Dow, S&P 500, Nasdaq retreat after Trump delivers his tariff salvoes

The S&P 500 (^GSPC) and Nasdaq 100 (NQ=F) have eradicated all of their post-election positive factors as shares deepen their sell-off with recent tariffs on Canada, Mexico, and China now formally in impact.

The benchmark index is now down 1% since Election Day. Notably, it has erased about $3.3 trillion in market cap since February 19.

The Nasdaq 100 (NQ=F) has fallen over 4% over that very same time interval, whereas the broader tech index is down about 1.5%. The blue-chip Dow (^DJI) has dropped practically 1% since Nov. 5.

Just a few months in the past, shares traded at constant information as Donald Trump’s presidential win fueled bullish Wall Road euphoria on hopes of pro-business insurance policies and decrease taxes.

Flash ahead to right this moment, and that euphoria has all however evaporated as Trump’s tariffs spark progress fears whereas inflation stays stubbornly elevated.

“Lots of the key developments in monetary markets within the run-up to and quick aftermath of the US election final November have stalled or partly reversed since President Trump took workplace final month,” Jonas Goltermann, deputy chief markets economist at Capital Economics, wrote in a notice final week.

“Since then, US Treasury yields have dropped again, the 2-10s curve has flattened, US equities have struggled each in absolute phrases and relative to these elsewhere, and the greenback has dropped again,” he stated. “In different phrases, the ‘Trump commerce’ narrative that dominated many markets in This fall is floundering.”