US close: Stocks sharply lower after Trump raises global tariff rate

(Sharecast News) - Major indices were firmly in the red at the close of trading on Monday as Donald Trump raised his global tariff rates after the Supreme Court ruled he had exceeded his powers when instituting his so-called "reciprocal" tariffs.

At the close, the Dow Jones Industrial Average was down 1.66% at 48,804.06, while the S&P 500 shed 1.04% to 6,837.75 and the Nasdaq Composite saw out the session 1.13% weaker at 22,627.27.

The Dow closed 821.91 points lower on Monday, its worst daily performance for a month, more than reversing gains recorded in the previous session.

Trump said over the weekend that he would lift his newly announced global tariff rate to 15%, up from the 10% level outlined a day earlier, adding that the duties would take effect immediately, although it remained unclear whether any formal documentation had been issued to enact the change.

In a post on social media, Trump said the increase represented the "fully allowed" level under existing law and signalled that further levies would follow in the coming months - adding to market uncertainty around the outlook for both inflation and global growth.

"I, as President of the United States of America, will be, effective immediately, raising the 10% Worldwide Tariff on Countries, many of which have been 'ripping' the US off for decades, without retribution (until I came along!), to the fully allowed, and legally tested, 15% level," Trump said.

Following the news, the European Parliament postponed a planned vote on the EU's trade agreement with the US following Donald Trump's decision to impose a blanket 15% import tariff, according to parliamentary sources cited by Reuters. Lawmakers had been due to consider proposals to remove a range of EU duties on US goods as part of the deal agreed upon last July, as well as the continuation of zero tariffs on US lobsters first introduced in 2020. The vote, scheduled for Tuesday, has now been delayed for a second time, with MEPs previously halting work on the agreement in response to Trump's demands to acquire Greenland and threats of additional tariffs on European allies that opposed the plan.

Trump's global tariff shake-up was enacted under Section 122 of the Trade Act of 1974, a provision that allows the president to impose duties for up to 150 days before requiring congressional approval.

Geopolitics also remained in focus, with Iran continuing to weigh on sentiment after Trump urged Tehran to reach an agreement on its nuclear programme, warning that "bad things" could occur otherwise.

Additionally, bitcoin came under pressure as risk appetite softened, sliding 4.27% to $64,728.05 as the benchmark cryptocurrency remained roughly 4.27% lower amid an ongoing bout of volatility, while gold prices jumped amid the tariff uncertainty, with Spot gold advancing 2.41% to $5,229.02 and gold futures rising 3.28% to $5,247.60.

On the macro front, the Chicago Federal Reserve's national activity index improved in January, pointing to a pickup in economic momentum at the start of the year, with the index rising to +0.18, up from -0.21 in December, its strongest reading since February 2025. Productionrelated indicators drove the improvement, contributing +0.19 compared with -0.03 previously, while employment edged slightly positive at +0.01 after a -0.11 reading in December. Sales, orders and inventories remained marginally negative at -0.02, though this was an improvement on -0.04, and personal consumption and housing made a neutral contribution after detracting -0.04 a month earlier.

Elsewhere, factory orders fell in December, according to the Census Bureau, with new orders for manufactured goods down 0.7% monthonmonth at $617.5bn. December's decline followed a strong November and was driven by a 1.4% drop in durable goods orders to $319.9bn, as transportation equipment weakened sharply. Orders for nondefence aircraft and parts slumped, offsetting gains in categories such as computers and electronic products, machinery, fabricated metals and primary metals. Non-durable goods orders were broadly unchanged at $297.6bn.

No major corporate earnings were released on Monday.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Procter & Gamble Co. (PG) $164.76 2.73%

McDonald's Corp. (MCD) $335.23 1.62%

Johnson & Johnson (JNJ) $245.55 1.38%

Merck & Co. Inc. (MRK) $123.59 1.28%

Amgen Inc. (AMGN) $379.42 1.25%

Coca-Cola Co. (KO) $80.57 0.90%

Verizon Communications Inc. (VZ) $49.85 0.87%

Apple Inc. (AAPL) $266.18 0.60%

Chevron Corp. (CVX) $184.26 0.53%

Travelers Company Inc. (TRV) $305.94 0.15%

Dow Jones - Fallers

International Business Machines Corporation (CDI) (IBM) $231.07 -13.15%

American Express Co. (AXP) $318.71 -7.20%

Visa Inc. (V) $305.67 -4.50%

JP Morgan Chase & Co. (JPM) $297.48 -4.22%

Salesforce.Com Inc. (CRM) $175.68 -3.78%

Nike Inc. (NKE) $62.94 -3.53%

Goldman Sachs Group Inc. (GS) $891.30 -3.25%

Microsoft Corp. (MSFT) $384.47 -3.21%

Unitedhealth Group Inc. (UNH) $284.14 -2.64%

Cisco Systems Inc. (CSCO) $77.74 -1.84%

S&P 500 - Risers

Paypal Holdings Inc (PYPL) $44.05 5.76%

Albemarle Corp. (ALB) $175.68 5.40%

Akamai Technologies Inc. (AKAM) $98.75 4.87%

Eli Lilly and Company (LLY) $1,049.08 4.86%

Corning Inc. (GLW) $144.42 4.11%

Edwards Lifesciences Corp. (EW) $82.06 3.33%

Kroger Co. (KR) $68.10 2.86%

Abbott Laboratories (ABT) $114.65 2.74%

Amer Water Works (AWK) $132.32 2.74%

Procter & Gamble Co. (PG) $164.76 2.73%

S&P 500 - Fallers

International Business Machines Corporation (CDI) (IBM) $231.07 -13.15%

Dxc Technology Company (DXC) $12.18 -11.24%

Lincoln National Corp. (LNC) $36.40 -10.55%

Capital One Financial Corp. (COF) $192.24 -8.84%

Bath & Body Works, Inc. (BBWI) $22.73 -7.63%

Robert Half Inc. (RHI) $24.20 -7.53%

Expedia Group Inc. (EXPE) $188.51 -7.36%

VF Corp. (VFC) $19.61 -7.30%

American Express Co. (AXP) $318.71 -7.20%

TripAdvisor Inc. (TRIP) $10.06 -6.94%

Nasdaq 100 - Risers

Paypal Holdings Inc (PYPL) $44.05 5.76%

Mondelez International Inc. (MDLZ) $60.38 2.69%

Liberty Global plc Series A (LBTYA) $12.85 2.47%

Illumina Inc. (ILMN) $120.54 2.44%

Liberty Global plc Series C (LBTYK) $12.38 2.31%

Biogen Inc (BIIB) $196.34 2.24%

T-Mobile Us, Inc. (TMUS) $219.95 2.08%

O'Reilly Automotive Inc. (ORLY) $95.35 1.98%

Henry Schein Inc. (HSIC) $80.57 1.26%

Amgen Inc. (AMGN) $379.42 1.25%

Nasdaq 100 - Fallers

Qvc Group Inc Series A (QVCGA) $4.06 -12.69%

Expedia Group Inc. (EXPE) $188.51 -7.36%

Wynn Resorts Ltd. (WYNN) $107.25 -6.63%

Mercadolibre Inc. (MELI) $1,864.46 -6.63%

Workday, Inc. (WDAY) $129.21 -6.24%

Cognizant Technology Solutions Corp. (CTSH) $61.13 -6.00%

Cadence Design Systems Inc. (CDNS) $279.80 -5.56%

Intuit Inc. (INTU) $359.55 -5.52%

Booking Holdings Inc. (BKNG) $3,870.83 -5.05%

American Airlines Group (AAL) $12.93 -4.86%