S&P500, Dow Jones, Nasdaq in red ahead of Donald Trump’s trade policy deadline

Following a decent start to the session, the S&P 500 struggled for direction on Monday, retreating as investors remained cautious ahead of a key deadline for former U.S. President Donald Trump’s trade policies. Economic jitters deepened, keeping a lid on any recovery from February’s selloff.

The benchmark index S&P500 and the Dow Jones Industrial Average both slipped 0.3 percent, while the Nasdaq Composite dropped 0.5 percent, dragged lower by a 4.6 percent decline in Nvidia.

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These losses followed a rough February for Wall Street, with all three major indexes ending the month in the red. The Dow and S&P 500 each shed over 1 percent, while the Nasdaq Composite tumbled 4 percent—its worst month since April 2024.

Fresh economic data on Monday painted a worrying picture, with weak numbers from the manufacturing and construction sectors adding to concerns about the broader economy. This marks the start of a data-heavy week, culminating in the highly anticipated February jobs report on Friday.

Investor sentiment remained fragile as Trump’s impending trade tariffs cast a shadow over the market. Concerns that the proposed duties could stoke inflation and disrupt trade have fueled volatility in recent weeks.

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Commerce Secretary Howard Lutnick said in a televised interview Sunday that the tariffs set to take effect Tuesday against Mexico and Canada were still “fluid” and could come in lower than the initially proposed 25 percent. However, he confirmed that an additional 10 percent duty on Chinese imports was “locked in.” Meanwhile, Treasury Secretary Scott Bessent noted that Mexico has offered to match U.S. tariffs on China, possibly as a way to sidestep penalties on its exports.

Elsewhere, cryptocurrencies staged a sharp rally after Trump announced plans for a U.S. strategic crypto reserve, which will include bitcoin and ether. Bitcoin briefly surged 10 percent to nearly $94,000, rebounding from a three-month low below $80,000 last week.

European markets rise

Europe advanced on Monday, driven by a surge in defence stocks following regional security talks that emphasized increased military spending. The pan-European Stoxx 600 fluctuated in early trade but climbed 1.2 percent by 2 p.m. in London. The Stoxx Europe aerospace and defence index jumped 8 percent, heading for its strongest session in five years.

Indian indices flat

The Sensex and Nifty closed flat on March 3, after falling over half a percent around noon. While oil & gas and financial services stocks dragged the Nifty lower, IT stocks provided some support. Volatility ruled the session as global trade concerns kept investor sentiment fragile.

The indices had opened higher, attempting a rebound after their longest monthly losing streak since 1996. A surprise uptick in domestic growth briefly lifted spirits, but persistent global uncertainties quickly erased those gains.

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