It was a rough day on Wall Street, as markets tumbled following President Donald Trump’s confirmation that steep new tariffs on Canada, Mexico, and China will take effect.
The S&P 500 fell 1.8% to close at 5,849—its worst single-day drop since December—while the Dow Jones shed more than 600 points, closing at 43,191. The Nasdaq suffered the biggest hit, dropping 2.6%, with major tech stocks leading the decline. Nvidia plunged over 8%, while other AI-related stocks, including Broadcom and Super Micro Computer, also saw heavy selling.
Markets initially traded higher but turned sharply lower after Trump ruled out any last-minute negotiations, stating that a 25% tariff on imports from Canada and Mexico would take effect at midnight, with an additional 10% tariff on Chinese goods also going ahead. Investors reacted swiftly, fearing the impact on key industries, with automakers like GM and Ford sliding to session lows.
Adding to the pressure, weak manufacturing and construction data released earlier in the day reinforced concerns about a slowing U.S. economy. The market now braces for Friday’s jobs report, which could set the tone for March trading.
Turning to Australia, the ASX is expected to open sharply lower, with futures down 0.86%. Iron ore slipped below $101 per tonne as concerns over Chinese steel demand weighed on the market, and Brent fell to $71 per barrel after OPEC+ announced plans to increase production.
Traders are also watching for key domestic data releases, including retail sales figures and the RBA’s latest policy minutes.
