NEW YORK (AP) 鈥� U.S. stocks slumped Monday after President Donald Trump , while investors continued to that could be losers in the artificial-intelligence revolution.
The S&P 500 fell 1% after Trump said on Saturday that he would place on other countries. That鈥檚 up from the 10% rate he announced Friday following that struck down his sweeping 鈥渞eciprocal鈥� taxes on imports from around the world.
The Dow Jones Industrial Average dropped 821 points, or 1.7%, and the Nasdaq composite sank 1.1%.
Trump鈥檚 quick move toward more aggressive tariffs shows over the , even after the Supreme Court said the president lacked the legal authority to institute his sweeping 鈥渞eciprocal鈥� tariffs.
Beyond a 15% tariff that could last for up to 150 days, unless Congress extends it further, Trump is moving forward on other avenues to place more permanent tariffs on countries and industries. That has trading partners uneasy. South Korea鈥檚 trade minister, Kim Jung-kwan, said Monday that if the Trump administration continues imposing new tariffs under alternative laws.
To be sure, Monday鈥檚 moves for markets weren鈥檛 close to as bad as when Trump initially announced his 鈥淟iberation Day鈥� tariffs. U.S. stocks were modestly higher for a brief moment during the morning.
The U.S. dollar鈥檚 value edged lower against other currencies. Bitcoin briefly fell below $64,000 but remained above its low point reached earlier this month. Gold continued to rise thanks to its reputation as something safer to own during uncertain times.
Investors may be sensing it will take a long time, as well as more court battles, before more clarity comes about how global trade will look.
鈥淪tocks got a boost Friday from the Supreme Court鈥檚 tariff ruling, but it quickly became clear that the decision was simply going to open a new chapter in the trade saga, not end it,鈥� according to Chris Larkin, managing director, trading and investing, at E-Trade from Morgan Stanley.
On Wall Street, big losses hit companies under suspicion of getting undercut by AI-powered rivals. Investors have been sharply and suddenly recently.
CrowdStrike fell 9.8% to widen its loss for the young year so far to 25.3%. A new tool from that scans codebases for security vulnerabilities and suggests targeted software patches for human review has been hitting stocks across the cybersecurity industry.
AppLovin sank 9.1% and took its loss for the year to date to 43.5%. It鈥檚 among the software companies hurt by worries that AI competition will steal customers and fundamentally reset their industries.
Companies that have lent money to software companies whose revenues may be under threat also continued falling, and Blue Owl Capital fell 3.4% to bring its loss for the year so far to 30.1%.
More big moves may still be ahead for Wall Street this week, particularly with a profit report from Nvidia coming on Wednesday.
Worries are rising that companies like Alphabet and Amazon may be spending so much on Nvidia鈥檚 chips that they鈥檒l never be able to recoup their investments through higher productivity and future profits.
Elsewhere on Wall Street, stocks of airlines fell after across the busy Northeast.
United Airlines lost 5.2%, American Airlines fell 4.9% and Delta Air Lines sank 3.7%.
Novo Nordisk鈥檚 stock that trades in the United States tumbled 16.4% after the Danish drugmaker said a trial for its CagriSema drug showed people lost a smaller percentage of their weight after 84 weeks than with a similar one made by rival Eli Lilly. Eli Lilly rose 4.9%.
All told, the S&P 500 fell 71.76 points to 6,837.75. The Dow Jones Industrial Average dropped 821.91 to 48,804.06, and the Nasdaq composite sank 258.80 to 22,627.27.
In stock markets abroad, indexes mostly fell in Europe. They had risen on Friday after the Supreme Court鈥檚 ruling.
In Asia, where markets got their first chance to react to the court鈥檚 ruling, Hong Kong鈥檚 Hang Seng jumped 2.5%, while South Korea鈥檚 Kospi rose a more modest 0.6%. Markets in Japan and mainland China were closed for holidays.
In the bond market, the yield on the 10-year Treasury fell to 4.03% from 4.08% late Friday.
A top official at the Federal Reserve said Monday on whether the Fed will cut its main interest rate at its next meeting in March or stand pat again.
The comments from Fed. Gov. Christopher Waller were a notable shift from January, when he was one of the two Fed governors to the central bank鈥檚 decision to hold its key rate steady after three rate cuts at the end of last year.
Lower rates would give the economy a boost, and lobbying angrily for them. But they also could risk worsening inflation.
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AP Business Writers Matt Ott and Elaine Kurtenbach contributed.
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