President Donald Trump’s “Liberation Day” is fast approaching, and stock markets from Wall Street to Wellington, New Zealand, are falling Monday in advance of it.
In New York, the S&P 500 was down 0.6% following one of its worst losses of the past couple of years on Friday. It’s on track to finish the first three months of the year with a loss of nearly 6%, which could make this its worst quarter in nearly three years.
The index had been down as much as 1.7%, but it pared its loss as the morning progressed. The Dow Jones Industrial Average completely erased its early drop and was up 43 points, or 0.1%, as of 11:30 a.m. Eastern time. But sharp slides for Tesla, Nvidia and other influential Big Tech stocks had the Nasdaq composite down 1.6%.
The U.S. stock market’s swings followed a sell-off that spanned the world earlier Monday as worries build that tariffs coming Wednesday from Trump will worsen inflation and grind down growth for economies. Trump has said he’s plowing ahead in part because he wants more manufacturing jobs back in the United States.
In Japan, the Nikkei 225 index dropped 4%. South Korea’s Kospi sank 3%, and France’s CAC 40 fell 1.6%. In New Zealand, the NZX 50 slipped a more modest 0.1%.
Instead of stocks, which can be some of the riskiest possible investments, prices strengthened for things considered safer bets when the economy is looking shaky. Gold rose again to briefly crest $3,160 per ounce.
Prices for Treasury bonds also climbed, which in turn sent their yields down. The yield on the 10-year Treasury fell to 4.22% from 4.27% late Friday and from roughly 4.80% in January. It’s been falling as worries build about tariffs.
On Wednesday, the United States is set to begin what Trump calls “reciprocal” tariffs, which will be tailored to match what he sees is the burden each country places on his, including things like value-added taxes. Much is still unknown, including exactly what the U.S. government will do on “Liberation Day.”
