The S&P 500 fell 0.9%, the Nasdaq 100 lost 1.2%, and the Dow declined 1.6% on Monday, as renewed concerns over AI-driven economic disruption and US trade policy pushed investors out of riskier assets. President Trump raised global tariffs to 15% under Section 122, prompting the European Parliament to halt ratification of its trade agreement with the US and casting doubt on the durability of the policy, given that Congress is unlikely to extend the measures beyond the 150-day limit. The increase came after the Supreme Court last week struck down the administration’s proposed “reciprocal” tariffs.
Technology names were hit particularly hard, with software and payments firms selling off on fears of AI-led job displacement. IBM tumbled 13.1% after Anthropic unveiled new coding tools, while American Express dropped 7.2% following research that warned of large-scale AI-driven unemployment. In contrast, defensive consumer staples such as Walmart advanced, with the retailer gaining 2.3%. Nvidia edged higher ahead of its earnings report later this week.
