US Markets Crash on Monday, posting their biggest single-day decline of the year as weak economic data and new tariffs imposed by the US rattled investors. The S&P 500 plunged 1.8%, turning negative for the year, marking its worst performance since December. The Dow Jones Industrial Average dropped 650 points, at one point seeing an 800-point intraday swing, while the Nasdaq Composite sank 2.7%, led by a steep 8% decline in Nvidia shares.

Tariffs Ignite Market Chaos

Markets traded flat for most of the morning session, but sentiment shifted dramatically after US President Donald Trump announced a 25% tariff on Canada and Mexico, set to take effect on Tuesday.

“No room left for Mexico or for Canada,” Trump declared from the White House alongside Commerce Secretary Howard Lutnick. “Reciprocal tariffs start on April 2. But very importantly, tomorrow, tariffs—25% on Canada and 25% on Mexico—will start,” he emphasized. Trump also confirmed a 10% additional tariff on China.

Read the full statement: White House Press Release

Economic Data Fuels Investor Fears

Monday’s disappointing economic reports further fueled selling pressure. Data revealed:

• Weaker housing market
• Rising unemployment claims
• Declining personal spending

The cryptocurrency market, often seen as a risk proxy, also reacted sharply. Bitcoin plummeted 9.5%, a stark reversal from the previous day’s rally triggered by Trump’s push for a digital-asset stockpile.

“It’s Time to Be Nervous,” Say Experts

Market strategists are urging caution amid the uncertainty. Callie Cox of Ritholtz Wealth Management noted:

“It’s time to be nervous. Not bearish, but nervous. The economy is shifting quickly, and investors are struggling to keep up with relentless headlines.“

For expert insights: Bloomberg Markets

Europe Bucks the Trend as Fear Grips Wall Street

While US stocks plunged, European markets surged, extending an international rotation trade that has dominated 2025.

Meanwhile, Wall Street’s fear gauge, the VIX, spiked to its highest level since December, reflecting rising investor anxiety.

Big Tech Takes a Beating

All megacap tech stocks suffered losses, with Nvidia Corp. sliding 8.7%. Meanwhile, Taiwan Semiconductor Manufacturing Co. (TSMC) announced a $100 billion investment in US-based chip plants, supporting Trump’s push for domestic manufacturing.

For details: TSMC Official Statement

Oil & Treasury Yields React

• Oil prices declined as OPEC+ moved forward with its plan to revive halted production, following Trump’s pressure to reduce costs.
• The 10-year Treasury yield dropped five basis points to 4.16%.
• The US dollar slid 0.4%, reflecting weaker investor confidence.

What’s Next for the Markets?

According to JPMorgan Chase strategists, the rotation out of US big tech could continue, shifting investor focus towards value stocks and international markets.

Meanwhile, Morgan Stanley’s Michael Wilson warned that equities will become increasingly sensitive to economic growth trends, rather than bond yield movements.

Citigroup strategists also raised concerns that US earnings estimates do not fully account for the potential impact of Trump’s proposed tariffs.

(With inputs from CNBC Market Insights.)