Market Turmoil as Tariffs Stir Wall Street Anxiety

Wall Street's major indexes sharply declined following President Trump's announcement of 25% tariffs on Canada and Mexico. The ISM survey indicated a manufacturing slowdown, fuelling economic concerns. The Dow, Nasdaq, and S&P 500 all experienced significant losses amid fears of inflation and further tariffs on China.

Wall Street's leading stock indexes experienced a steep decline this Monday as President Donald Trump announced the imposition of 25% tariffs on imports from Canada and Mexico. These economic measures came in tandem with data revealing a slight reduction in U.S. manufacturing activity, amplifying investor concerns.

The ISM survey reported a drop in the manufacturing PMI to 50.3 from January's 50.9, along with a contracting forward-looking new orders index. This news, combined with tariff uncertainty, contributed to market unrest, with financial experts citing a continuation of unfavorable economic news dampening previous optimism from positive fourth-quarter earnings.

Amid worries of an economic slowdown and potential inflation hikes, trading sentiment became bearish. The S&P 500, Nasdaq Composite, and Dow Jones Industrial Average all closed significantly lower, while fears of additional tariffs from China loom as Trump threatens new duties on Chinese imports. Traders are speculating on potential interest rate cuts from the Federal Reserve, reflecting on the evolving economic landscape.

(With inputs from agencies.)