U.S. stocks experienced a turbulent session on Monday, closing broadly lower as investor anxiety over escalating trade tensions with China continued to mount. The Dow Jones Industrial Average declined by 349.26 points, or 0.91%, to finish at 37,965.60, its third consecutive loss following a series of tariff announcements by President Donald Trump. The Dow saw its largest intraday swing on record, reversing more than 2,500 points from session low to high. The volatility followed Trump’s renewed threats to increase tariffs on Chinese imports if Beijing failed to retract its own retaliatory measures by April 8.
In a statement on media, the president warned of additional 50% tariffs on Chinese goods, to take effect April 9, while also stating that all pending trade talks with Chinese officials would be suspended. Despite market speculation of a possible delay, the White House dismissed rumors of a 90-day pause as false, reinforcing its commitment to implementing the tariff measures. The S&P 500 fell 0.23% to close at 5,062.25, while the Nasdaq Composite edged higher by 0.10%, ending the session at 15,603.26. At their respective session lows, the S&P 500 and Nasdaq had each dropped over 4%, with the former briefly entering bear market territory before recovering slightly.
The recent downturn marks the S&P 500’s worst three-day performance since the early days of the COVID-19 pandemic in 2020, falling more than 10% in that span. Trading volume surged to historic levels, with over 29 billion shares changing hands marking the highest daily volume in at least 18 years. The elevated activity came amid fears of forced selling, particularly by hedge funds needing to meet margin calls. The CBOE Volatility Index (VIX), often referred to as Wall Street’s “fear gauge,” briefly surged past 60, a level not seen since August 2024, before closing at 46.98. Investor concern was further stoked by comments from high-profile market figures.
Billionaire investor Bill Ackman criticized the administration’s trade stance, warning of an impending “economic nuclear winter” if the current tariff strategy continues unchecked. Trade advisor Peter Navarro, however, defended the administration’s position, emphasizing the need to address what he called “non-tariff cheating.” Companies with significant exposure to Chinese markets bore the brunt of Monday’s sell-off. Shares of Apple dropped 3.7%, extending its three-day loss in market capitalization to nearly $640 billion.
Despite overtures from nations such as Vietnam, which offered to reduce tariffs on U.S. goods, the administration signaled that broader concessions were required before reconsidering its trade position. Analysts say investor sentiment is likely to remain fragile amid ongoing geopolitical pressures and the absence of a clear resolution. “The administration’s approach seems to be escalating risk without a clear endpoint,” said Rick Meckler, partner at Cherry Lane Investments. “Until there is a shift in tone, markets will remain on edge.” – By MENA Newswire News Desk.