A trader works on the floor of the New York Stock Exchange.
NYSE
U.S. equities tumbled on Monday as investors grappled with persistent fears around artificial intelligence disruptions to various industries and President Donald Trump’s decision to raise his global tariffs.
The Dow Jones Industrial Average dropped 821.91 points, or 1.66% to close at 48,804.06, while the Nasdaq Composite declined 1.13% and ended at 22,627.27. The S&P 500 shed 1.04% and closed at 6,837.75, putting it into the red once again for 2026.
The 30-stock Dow was dragged down by IBM shares, which declined 13% on the heels of Anthropic outlining new programming capabilities for its Claude Code product.
Software stocks such as Microsoft and CrowdStrike were under pressure yet again as AI disruption worries hovered over the market. Microsoft dropped 3%, while CrowdStrike retreated nearly 10%. Software hasn’t been the only sector to be hit due to AI fears recently: Stocks linked to trucking and logistics, commercial real estate and financial services have similarly suffered losses this month.
Concerns around what AI could mean for the economy were fueled this past weekend after Citrini Research put out a piece of research on how the AI boom could hurt the broader economy, as it would lead to 10% unemployment.
The research paper was cited by Wall Street trading floors for the weakness seen in software stocks, as well as financials. American Express lost 7% for the second-worst performance in the Dow. Mastercard shares dropped nearly 6%.
In contrast, defensive areas of the market such as consumer staples outperformed. Shares of Walmart and Procter & Gamble led the way there, rising more than 2% each.
Tariff turmoil continues
Trump continued to assert his ability to increase tariffs on Monday, warning of higher duties for countries that want to “play games” after the Supreme Court struck down his “reciprocal” tariffs last week.
That comes after the president on Saturday said he would increase the global tariff rate to 15%, up from the 10% he announced on Friday. Trump added that the new duties would go into effect immediately, though it was unclear whether any official documents had been signed outlining the timing. He also said that additional levies would be coming in the next few months.
European officials expressed concern regarding the action, signaling that it could pose a threat its trade deals with the U.S. In fact, the European Parliament announced Monday that it has paused work on ratifying the trade agreement reached between the U.S. and the European Union.
Stocks such as Wayfair and Nike — two names that popped in the previous session after the high court’s ruling — declined on Monday.
Gold prices gained Monday, as the new tariffs heightened market uncertainty about the outlook for inflation and ​global growth. Spot gold advanced about 2%, while gold futures rose nearly 3%.
Bitcoin slumped, tumbling to below $65,000. It remains down more than 4% as the cryptocurrency’s sharp sell-off continues.
Volatility surrounding Trump’s global tariff policy — which was invoked under Section 122 of the Trade Act of 1974, a statute that allows the president to impose the duties for 150 days until Congressional approval is needed — may not be over anytime soon.
“The big question for the economy is what happens after this window, and if the tariff policy stays down this path, we may very well be back at the Supreme Court later this year,” said Michael Landsberg, chief investment officer at Landsberg Bennett Private Wealth Management. “The push and pull with tariffs is likely to be a distracting theme for markets for the remainder of the year, albeit with less volatility than the initial shock last April.”