The Dow Jones Industrial Average and S&P 500 ended Monday in the red after a volatile trading day driven by conflicting signals from President Donald Trump on tariffs, which sent markets on a dizzying ride from steep losses to gains—and back again.
The Dow saw its largest intraday point swing in history, plunging more than 1,700 points early in the session before rallying by 2,595 points off its low. Despite the dramatic rebound, the index still closed down 349 points, or 0.91%. The S&P 500 slipped 0.23%, while the Nasdaq managed to eke out a modest gain of 0.1%.
The S&P 500 briefly dipped into bear market territory during the day, ending nearly 18% below its recent peak. According to S&P Global, the day’s 8.5% range between its high and low has occurred only 20 times since 1962.
Markets opened sharply lower amid continued anxiety over Trump’s escalating trade war. However, stocks rebounded mid-morning after Trump posted a seemingly conciliatory message on Truth Social, suggesting global leaders were engaging in talks and that tariff terms were being negotiated.
“Countries from all over the World are talking to us,” Trump wrote. “Tough but fair parameters are being set.”
But optimism quickly faded when Trump reversed course just hours later, threatening a new 50% tariff on Chinese goods unless Beijing rolled back its recently announced 34% retaliatory duties. Those Chinese tariffs were in response to the U.S.’s earlier 34% levy, itself stacked on top of an existing 20% tariff—meaning Trump’s latest threat could push total U.S. tariffs on Chinese imports to a staggering 104%.
The shift in tone unnerved investors, sending markets back into a downward spiral by late afternoon. Monday’s losses deepened a broader market downturn that began last week when Trump unveiled his sweeping new tariff strategy. The Dow capped its worst week since 2020, while the Nasdaq officially entered bear market territory.
“There’s a massive amount of volatility right now, driven by just as much uncertainty,” said Bret Kenwell, U.S. investment analyst at eToro, speaking to ABC News. “Every headline, every post, every threat carries the potential to swing the market dramatically.”
With no clear resolution in sight, investors are bracing for continued turbulence as trade tensions reshape expectations for global growth and financial stability.
