Monday was another bruising session on Wall Street, with the Dow Jones Industrial Average closing down 349 points—or 0.91%—at 37,965. That marked the third straight day of declines as President Trump’s tariff threats continued to rattle global markets. At its worst point, the Dow had plunged more than 1,700 points before staging a brief intraday rebound, only to retreat once again. In total, it recorded a 2,595-point swing—its largest intraday reversal on record.
The S&P 500 shed 0.23% to close at 5,062, while the Nasdaq eked out a 0.1% gain to finish at 15,603, lifted modestly by bargain-hunting in big tech stocks like Nvidia and Palantir. Still, the S&P 500 has now dropped over 10% in just three sessions—its worst run since the early pandemic days of 2020.
Rumours swirl, but White House stays firm
Markets briefly staged a rally during the session after rumours circulated on social media suggesting a possible 90-day pause to the tariff rollout. That hope was quickly dashed, with the White House calling the reports “fake news.” President Trump reaffirmed his hardline stance, threatening even steeper tariffs on China if it fails to meet US demands by April 8.
In a post on Truth Social, Trump wrote: “If China does not withdraw its 34% increase above their already long term trading abuses… the United States will impose additional tariffs on China of 50%, effective April 9.”
Margin calls, fear, and global fallout
Trading volume reached a staggering 29 billion shares—its highest level in at least 18 years. Meanwhile, the CBOE Volatility Index surged as high as 60, an extreme level typically reserved for bear market territory. Analysts warned that forced selling by hedge funds trying to meet margin calls could further amplify the declines.
Apple was once again in the crosshairs, falling 3.7%. The tech giant has now shed nearly US$640bn in market cap over three days, with investors bracing for its China-exposed supply chain to be hit hard by escalating tariffs.
Commodities and the dollar
WTI crude is trading 2.08% lower at US$60.70 a barrel.
Brent crude is trading 1.86% lower at US$64.36 a barrel.
Spot gold is trading 0.01% lower at US$2,982.98 an ounce.
One Australian dollar is buying 59.85 US cents.
Futures
The Australian market is expected to rebound at the open, with the SPI futures pointing to a 55 point rise.
NAB’s monthly business survey and Westpac’s consumer sentiment report are due today.
