Nasdaq Drops as Trump Confirms Mexico-Canada Tariffs: Nvidia and Tech Stocks Hit

U.S. stocks fell on Monday after President Donald Trump confirmed that tariffs on Mexico and Canada would start on March 1. The Nasdaq Composite led the decline, dropping 1.2%, while the S&P 500 fell 0.5%. Tech stocks were the hardest hit, with Nvidia losing 3% as investors assessed potential risks from the tariffs and awaited its upcoming earnings report. Meanwhile, Microsoft saw a decline amid reports of reduced data center growth, while Apple experienced a slight increase following its announcement of a $500 billion U.S. investment.

Tech stocks took a hit following Trump’s comments about tariffs on Mexico and Canada. Nvidia (NVDA) lost 3% as investors weighed potential risks. Microsoft (MSFT) showed a decrease in stock value because reports indicated a possible reduction in its data center growth. Apple stock (AAPL) slightly increased following its announcement of investing $500 billion in the United States.

The U.S. president declared that Mexico-Canada tariffs would start on March 1st following his delayed decision. Trump confirmed that Mexico and Canada would face trade tariffs which were set to start exactly according to the established timeline he announced in a public talk. Stock values declined sharply when investors showed their dislike after the market closed.

Market participants strongly focus on Nvidia’s upcoming earnings announcement which takes place on Wednesday. The market will closely observe how the AI chip leader handles potential tariff problems. Potential tariff challenges and the rising competition from China-based DeepSeek will represent essential issues for the market.

Big Tech stocks struggled as investors reassessed risks. Amazon (AMZN) declined alongside Nvidia and Microsoft. Meanwhile, Apple’s gains came after its commitment to boosting U.S. operations. The company’s investment plan includes a new manufacturing facility in Houston and the hiring of 20,000 workers.

Investors are also preparing for several key economic reports this week. The Personal Consumption Expenditure (PCE) index, the Federal Reserve’s preferred inflation gauge, will be released on Friday. Reports on US GDP, housing market trends and consumer confidence are also expected.

Stock markets are adjusting to policy shifts and corporate developments. Trump’s trade stance and Nvidia’s performance will likely shape market trends in the coming days. Investors remain focused on economic indicators and corporate earnings as uncertainty continues.