Key Moments:
- The S&P 500 fell 0.54% after markets opened on Monday, ending a 9-session rally.
- The Dow edged lower by 0.19%, and the Nasdaq Composite also struggled with a 0.78% fall.
- A new 100% tariff on foreign-made movies weighed heavily on entertainment stocks.
Wall Street Starts Week in the Red
Major US equity indices opened the week with losses as market optimism faded amid escalated trade concerns and unexpected tariff announcements. The S&P 500 slid 0.54%, snapping its longest winning streak in over two decades. The Nasdaq Composite pulled back 0.78%, while the Dow Jones Industrial Average dropped by 0.19% to 41,238.29.
Renewed Trade Tensions Spell Trouble
Investor sentiment soured after President Donald Trump revealed that conversations with Chinese President Xi Jinping were not scheduled for the coming week. While hinting at potential trade deals with other unnamed countries, Trump’s comments failed to reassure markets hoping for signs of momentum in US-China talks.
The pressure intensified late Sunday when Trump greenlit a new 100% tariff on films not made in the United States. Labeling foreign support for film production as a “national security threat,” he gave government agencies the go-ahead to explore the implementation of the levy.
The entertainment sector reacted sharply to the announcement. Shares of Walt Disney fell over 1%, while Warner Bros, Discovery’s stock slid 0.82%. Streaming giant Netflix also suffered, dropping by around 2%.
In addition to entertainment, pretty much all major sectors opened lower, with energy, financials, and consumer discretionary suffering the biggest losses. Mega-cap tech names fell, including Apple, which sank nearly 3%, and Nvidia (down 1.29%). Investors also lost confidence in Amazon’s stock, as its share price dropped by 1.48%.
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