Stocks sink after Trump threatens to escalate trade war despite seeing how much Wall Street hates it
By STAN CHOE, ELAINE KURTENBACH and DAVID McHUGH, AP Business Writers
NEW YORK (AP) — U.S. stocks are falling in a manic Monday after President Donald Trump doubled down on his tariffs, despite seeing how much Wall Street wants him to do the opposite.
The S&P 500 was down 1.7% in midday trading, coming off its worst week since COVID began crashing the global economy in March 2020. The index, which sits at the heart of many investors’ 401(k) accounts, has been flirting with a drop of 20% from its record set less than two months ago.
The Dow Jones Industrial Average was down 860 points, or 2.2%, as of 1:05 p.m. Eastern time, and the Nasdaq composite was 1.4% lower.
Earlier in a heart-racing morning, the Dow plunged as many as 1,700 points shortly after trading began, following even worse losses worldwide on worries that Trump’s tariffs could torpedo the global economy. But it suddenly surged to a leap of nearly 900 points. The S&P 500 went from a loss of 4.7% to a gain of 3.4%, which would have been its biggest jump in years.