Worries about President Donald Trump’s tariffs are hurting U.S. stocks Monday as financial markets worldwide drop on concerns about a potential trade war. The S&P 500 was down 1.
Worries about President Donald Trump’s tariffs are hurting U.S. stocks Monday as financial markets worldwide drop on concerns about a potential trade war.
The fear is that Trump’s tariffs will push up prices for groceries, electronics and all kinds of other bills for U.S. households, putting upward pressure on a U.S. inflation rate that's largely been slowing since its peak three summers ago. Stubbornly high or accelerating inflation could keep the Federal Reserve from cutting interest rates, which it began doing in September to give the U.S. economy a boost.
“The uncertainty at this stage is tremendous - not only of how these eventual negotiations will play out, but worries about how this is only the tip of the iceberg and more tariffs are on the horizon,” said Yung-Yu Ma, chief investment officer at BMO Wealth Management. Crude oil prices rose, suggesting inflationary pressure may already be starting. A barrel of benchmark U.S. crude rose 1.3% to $73.45. Brent crude, the international benchmark, rose 0.8% to $76.29.
Constellation Brands, the company that sells Modelo and Corona beers and also sells alcohol in Canada, fell 5.6%. Automakers, which import heavily from Mexico, also sank. General Motors dropped 5%. That puts the spotlight on companies like Nvidia and other winners of the artificial-intelligence boom. Nvidia fell 5.3% and was the heaviest single weight on the S&P 500.
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