Market Response

Investor sentiment has turned cautious, particularly in the light of concerns surrounding how these new tariffs will affect consumer prices. The latest statistics indicate that consumer confidence has dropped to a 12-year low, with many Americans expressing apprehension about ongoing tariffs and rising inflation levels.

As trading commenced on Monday, the Dow Jones Industrial Average fell by 403 points, equating to a decrease of about 1%, settling at 41,181. The S&P 500 index also receded by 1.6%, while the Nasdaq composite index saw a larger drop of approximately 2.5%.

These losses follow a sharp sell-off earlier this month, which has positioned the S&P 500 for its most challenging quarter in nearly three years, with a decline exceeding 5% in the first quarter. Investor anxiety stems from a combination of escalating inflation and a slowdown in the U.S. economy, as consumers increasingly hesitate to spend amidst an intensifying trade conflict initiated by Mr. Trump.

Bob Schwartz, a senior economist at Oxford Economics, expressed concern in a recent report stating, “Consumers are getting fed up, sending confidence to recession levels amid growing fears of higher inflation and deteriorating economic prospects,” highlighting the troubling financial landscape.

Details on Tariffs

While the specific details of the upcoming tariffs remain vague, analysts anticipate that these so-called reciprocal tariffs will be introduced to align U.S. import duties with those imposed by other nations.

Economic assessments generally indicate that average American households may face increased costs due to these tariffs, which are likely to be reflected in higher prices and diminished incomes, posing a significant challenge for inflation-weary Americans.

On the preceding Friday, the S&P 500 suffered a 2% decline, marking one of the most difficult trading days in the past two years. This represented the fifth loss in six weeks for the index, bringing the year-to-date decline to 5%.

Tesla and Other Company Performances

Tesla’s shares have continued to slide, falling by 5.6% on Monday. Since President Trump’s inauguration, Tesla’s stock has plummeted by 42%. The decline is partially attributed to public discontent surrounding Elon Musk’s management of the newly established Department of Government Efficiency, which is reportedly reducing government expenditures.

The automotive manufacturer also faces challenges in both European and U.S. markets amid protests against Musk’s political stance, leading to vandalism targeting Tesla showrooms and vehicles.

In other developments, Apple shares dipped by less than 1% following a $162 million fine imposed by France’s antitrust authority regarding competition law violations tied to a recent privacy feature launch. Meanwhile, shares of Rocket Mortgage decreased by 3.5% after announcing an all-stock acquisition of Mr. Cooper valued at $9.4 billion, while Mr. Cooper’s shares surged over 26% in response.

The price of gold reached a historic high before settling at approximately $3,149 per ounce, as investors shift towards traditional safe havens amidst the current market volatility.