U.S. markets suffered a steep selloff Monday as President Donald Trump announced sweeping new tariffs, extending last week’s losses and driving declines across all major sectors.
What Happened: The S&P 500 tracked by The SPDR S&P 500 (NYSE: SPY) closed at 5,849.72, sinking 1.76%, continuing its retreat from 5,983 on Feb 24. The Nasdaq-100 monitored by Invesco QQQ Trust, Series 1 QQQ fell to 20,425.58, down from 21,352 a week earlier, marking a significant correction from recent highs.
Technology stocks bore the brunt of the selloff, with NVIDIA Corp. NVDA plummeting 8.63% and ARM Holdings ARM dropping 8.05%. The sector’s decline follows a brutal week where AppLovin APP had already lost 20.64% and Super Micro Computer SMCI fell 19.67% between Feb. 24-28, according to data from Benzinga Pro.
However, some stocks showed positive performance amid the broader market selloff, according to the Benzinga Stock Heat Map.
In chemicals and allied products, Eli Lilly & Co. LLY gained 0.83%, while Procter & Gamble Co. PG and Johnson & Johnson JNJ also edged higher. Philip Morris International Inc. PM rose 2.33% in the tobacco sector. In telecom, T-Mobile US Inc. TMUS and Verizon Communications Inc. VZ climbed over 1.5%. Transport by air saw PHI Group Inc. PHIG gain 2.3%. Meanwhile, Coca-Cola Co. KO and PepsiCo Inc. PEP both advanced over 1.3%.
Industrials saw significant pressure, with Vertiv Holdings VRT falling 10.09% and FTAI Aviation FTAI down 7.89%. In healthcare, BeOne Medicines dropped 10.10% while Hims & Hers Health HIMS declined 9.77%.
Financial stocks weren’t spared, with Robinhood Markets HOOD shedding 6.51% and SoFi Technologies SOFI losing 6.40%. The slide continued a trend from last week when PayPal Holdings PYPL had already declined 5.58%.
Consumer discretionary and staples both tumbled, with Li Auto LI plunging 10.96% and Dollar Tree DLTR falling 6.02%. Energy stocks like Ovintiv OVV dropped 8.65%, while utilities Vistra VST and Constellation Energy CEG both fell 7.40%.
Why It Matters: The catalyst for Monday’s selloff was Trump’s announcement of 25% tariffs on imports from Canada and Mexico, plus an additional 20% tariff on Chinese goods. The Kobeissi Letter noted these increases would raise the U.S. average effective tariff to approximately 20%, levels not seen since the Great Depression.
Market strategist Tom Lee of Fundstrat suggested this week could mark the bottom for stocks in the first half of 2025, noting “a lot of bad news has gotten priced in” and that retail sentiment has reached bearish levels comparable to fall 2022.
Wall Street remains divided on the tariffs’ impact, with Peter Schiff warning of domestic economic harm while others like Anthony Pompliano pointed to Taiwan Semiconductor‘s TSM $100 billion U.S. investment announcement as evidence tariffs might boost domestic manufacturing.
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