What is the Stock Market ? Live Updates

Dow drops 500 points, Nasdaq flirts with correction territory as Trump’s trade war escalates: Live updates

On Monday, March 3, 2025, global financial markets experienced significant turmoil as escalating trade tensions led to substantial declines across major indices. The Dow Jones Industrial Average plummeted 649 points, a 1.5% drop, closing at 42,737.26. The Nasdaq Composite suffered a 2.6% decline, while the S&P 500 decreased by 1.8%.

The catalyst for this market upheaval was President Donald Trump’s announcement of new tariffs: 25% on imports from Canada and Mexico, and 10% on Chinese goods. These measures, aimed at addressing trade imbalances, have raised fears of a global trade war. In response, Canada and China implemented retaliatory tariffs, exacerbating tensions.

Major U.S. retailers, including Target and Best Buy, have warned that these tariffs could lead to higher consumer prices, potentially dampening consumer spending.

The financial sector was notably affected, with banks like Goldman Sachs, Wells Fargo, and JPMorgan Chase experiencing declines exceeding 1%. Investors sought refuge in U.S. government bonds, leading to a drop in the 10-year Treasury yield to 4.3%, its lowest since December.

The technology sector also faced significant setbacks. Nvidia’s stock fell nearly 9%, reaching its lowest point since September, while Tesla shares declined by almost 3%.

The repercussions extended beyond U.S. borders. European markets, including the FTSE 100, Germany’s DAX, and France’s CAC, all recorded declines. Japan’s Nikkei dropped 2.7%, and South Korea’s Kospi fell 2.5%.

Warren Buffett described the tariffs as an “act of war,” cautioning that they could intensify inflation and destabilize markets. He noted that the market, which had anticipated growth-oriented policies, has now reverted to pre-election levels.

In summary, the escalation of trade tensions has introduced significant volatility into global financial markets, with widespread declines across various sectors and regions. The long-term implications of these developments remain uncertain, and investors are advised to exercise caution in the face of ongoing trade disputes.