Stock Market Live UpdatesMajor Indexes Close Lower as Tariff Deadline Looms
On Monday, March 3, 2025, U.S. stock markets retreated, extending February’s losses as investors grappled with looming tariff deadlines and geopolitical tensions. The S&P 500 fell 0.9% to 5,949.46, while the Dow Jones Industrial Average dropped 383 points, or 0.9%, to 43,872.32. The tech-heavy Nasdaq Composite experienced the steepest decline, sliding 1.3% to 18,793.68.
These moves come on the heels of a disappointing February, where the Dow and S&P 500 each slipped more than 1%, and the Nasdaq Composite recorded its worst month since April 2024 with a pullback of 4%.
Tariff Concerns Weigh on Market Sentiment
The market’s rocky start to the new trading month is largely attributed to President Donald Trump’s plans to impose import duties on key U.S. trading partners this week. Commerce Secretary Howard Lutnick stated on Sunday that the exact tariff to be levied against Mexico and Canada starting Tuesday is still “fluid,” while an additional 10% duty on Chinese imports is “set.”
These policy proposals have rattled investors and stirred up market volatility, as traders worry about their potential to reignite inflation and impact global trade. The uncertainty surrounding the implementation of these tariffs has created a cautious atmosphere in the market.
Geopolitical Tensions Add to Market Woes
Adding to the market’s concerns, a diplomatic incident occurred during a meeting between President Trump and Ukrainian President Volodymyr Zelenskiy at the White House. The two leaders engaged in a verbal clash before the world’s media, and Zelenskiy left without signing a much-anticipated agreement on joint natural resource development.
This incident has raised concerns about the future of U.S.-Ukraine relations and its potential impact on ongoing geopolitical conflicts in the region. Market participants are wary of how these tensions might affect the U.S. economy, which is already grappling with persistent inflation and signs of weakness.
Sector Performance and Notable Stocks
Despite the overall market decline, some sectors and individual stocks managed to buck the trend:
1. Defense stocks surged following European leaders’ agreement to draft a Ukraine peace plan and acknowledgment of the need for increased defense spending. Shares of companies like Rheinmetall, Leonardo, and BAE Systems (BAES.L) saw gains of 11% to 15%.
2. Nvidia (NVDA) experienced a significant drop of more than 7%, contributing to the Nasdaq’s underperformance. This decline came after reports that Chinese buyers are circumventing U.S. export controls to order the company’s Blackwell chips.
3. Intel (INTC) saw its shares rise more than 2% following reports that chipmakers Nvidia and Broadcom are running manufacturing tests with the company.
4. Chinese automakers listed in the U.S. faced pressure, with Xpeng down more than 4%, Nio dropping more than 5%, and Li Auto (LI) plunging more than 10% following their latest delivery reports.
Cryptocurrency Surge on Trump’s Strategic Reserve Plan
In a surprising turn of events, Bitcoin surged by as much as 20% from last week’s lows after President Trump announced plans for a new U.S. strategic cryptocurrency reserve. The reserve is expected to include Bitcoin, Ether, XRP, Solana, and Cardano, although details on its implementation remain scarce.
Looking Ahead: Key Events to Watch
As the week progresses, investors will be closely monitoring several important events:
1. The implementation of tariffs on Canada and Mexico, scheduled for Tuesday, March 4.
2. The opening of China’s National People’s Congress on Wednesday, where stimulus measures and possible reprisals against the United States could be announced.
3. The European Central Bank meeting on Thursday, with expectations of an interest rate cut.
4. The January U.S. payrolls report, due on Friday, which will provide crucial insights into the state of the labor market.
5. Federal Reserve Chair Jerome Powell’s speech, scheduled shortly after the jobs report on Friday.
As market volatility persists, investors remain cautious, balancing concerns over trade policies, geopolitical tensions, and economic indicators. The coming days will be critical in shaping market sentiment and potentially setting the tone for the remainder of the month.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.