Source: Sharecast
Data showing a bigger-than-forecast slowdown in the manufacturing sector – owing mainly to tariff-related disruptions – and an unexpected decline in construction spending were also weighing on sentiment.
The Dow and S&P 500 fell 1.5% and 1.8%, respectively, finishing at their lowest levels since mid-January. The Nasdaq, however, plunged 2.6% to close at its lowest since early-November.
Trump said that 25% tariffs on all goods imported from Canada and Mexico would be imposed from Tuesday, after having been delayed for a month to leave space to address drug-smuggling and migration issues.
"No room left for Mexico or for Canada," Trump said. "The tariffs, you know, they're all set. They go into effect tomorrow."
He also announced an additional 10% levy on Chinese imports in addition to the 10% tariffs imposed last month.
In other news, Berkshire Hathaway chief executive Warren Buffett cautioned that punitive duties could trigger inflation and hurt consumers. "They're an act of war, to some degree," said Buffett. "Over time, they are a tax on goods. I mean, the Tooth Fairy doesn't pay 'em."
US manufacturing slows
The ISM's US manufacturing purchasing managers' index fell to 50.3 in February, 0.6 points lower than January, as tariff uncertainty resulted in the biggest one-month decline for new orders in four and a half years. While this was the second month of growth after 26 straight months of contraction, it still came in below the consensus forecast of 50.6.
However, the less-closely-watched S&P Global US manufacturing PMI rose to 52.7 in February, ahead of preliminary estimates of 51.6 and up from 51.2 in January for the strongest growth since June 2022.
Elsewhere, construction spending decreased by 0.2% month-on-month to $2.12trn in January, according to the Census Bureau, following December's 0.5% increase and missing expectations for a flat month-on-month reading. Private spending was down 0.2%, while public construction slumped 1.1%.
Market movers
US supermarket chain Kroger was lower on the news that chairman and chief executive Rodney McMullen has resigned after a board investigation found that his personal conduct was "inconsistent" with the company’s "policy on business ethics".
Intel's share price was surging on the back of reports that semiconductor giants Nvidia and Broadcom are testing chips using its 18A manufacturing process. If tests are successful, the chip designers could commit to "hundreds of millions of dollars' worth of manufacturing contracts to Intel", Reuters said.
Luxury conglomerate Capri Holdings was performing well on rumours that Prada is edging closer to a deal to buy its Versace brand after agreeing to a price of nearly €1.5bn. Bloomberg cited people familiar with the matter as saying that Prada and Capri could finalise a deal for the Italian luxury clothing firm this month.
Dow Jones - Risers
Verizon Communications Inc. (VZ) $43.10 1.79%
Coca-Cola Co. (KO) $71.21 1.56%
Johnson & Johnson (JNJ) $165.02 1.37%
Amgen Inc. (AMGN) $310.78 1.13%
Apple Inc. (AAPL) $238.03 1.04%
Procter & Gamble Co. (PG) $173.84 1.01%
Merck & Co. Inc. (MRK) $92.25 0.98%
Travelers Company Inc. (TRV) $258.49 0.91%
Dow Jones - Fallers
Dow Chemical Co. (DOW) $38.11 -5.38%
Walgreens Boots Alliance, Inc. (WBA) $10.26 -5.26%
Chevron Corp. (CVX) $158.62 -3.49%
Caterpillar Inc. (CAT) $343.95 -3.46%
Goldman Sachs Group Inc. (GS) $622.29 -2.74%
Boeing Co. (BA) $174.63 -2.62%
American Express Co. (AXP) $300.96 -1.82%
Home Depot Inc. (HD) $396.60 -1.74%
Unitedhealth Group Inc. (UNH) $474.96 -1.67%
Salesforce.Com Inc. (CRM) $297.85 -1.61%
S&P 500 - Risers
Weyerhaeuser Co. (WY) $30.10 4.29%
Hershey Foods Corp. (HSY) $172.71 3.35%
Foot Locker Inc. (FL) $17.32 3.23%
Gilead Sciences Inc. (GILD) $115.99 3.03%
Hormel Foods Corp. (HRL) $28.63 2.97%
eBay Inc. (EBAY) $65.22 2.94%
Verisk Analytics Inc. (VRSK) $301.33 2.93%
Amer Water Works (AWK) $135.97 2.65%
Altria Group Inc. (MO) $55.85 2.61%
McCormick & Co. (MKC) $82.61 2.57%
S&P 500 - Fallers
Albemarle Corp. (ALB) $77.03 -9.19%
Celanese Corp. (CE) $50.94 -7.70%
Arista Networks Inc. (ANET) $93.05 -7.57%
Helmerich & Payne Inc. (HP) $26.51 -6.87%
ConocoPhillips (COP) $99.15 -6.58%
HF Sinclair Corporation (DINO) $35.27 -6.24%
DENTSPLY Sirona Inc. (XRAY) $15.99 -5.94%
Dollar Tree Inc (DLTR) $68.77 -5.81%
Align Technology Inc. (ALGN) $175.09 -5.75%
Apache Corp. (APA) $18.89 -5.70%
Nasdaq 100 - Risers
Tesla Inc (TSLA) $284.65 3.86%
Gilead Sciences Inc. (GILD) $115.99 3.03%
eBay Inc. (EBAY) $65.22 2.94%
Verisk Analytics Inc. (VRSK) $301.33 2.93%
Biomarin Pharmaceutical Inc. (BMRN) $71.02 2.20%
Mondelez International Inc. (MDLZ) $65.78 2.17%
Microchip Technology Inc. (MCHP) $57.95 2.16%
Check Point Software Technologies Ltd. (CHKP) $221.09 1.91%
Paychex Inc. (PAYX) $153.37 1.88%
Charter Communications Inc. (CHTR) $370.66 1.83%
Nasdaq 100 - Fallers
Qvc Group Inc Series A (QVCGA) $0.29 -13.64%
DENTSPLY Sirona Inc. (XRAY) $15.99 -5.94%
Dollar Tree Inc (DLTR) $68.77 -5.81%
Align Technology Inc. (ALGN) $175.09 -5.75%
American Airlines Group (AAL) $13.87 -5.45%
Walgreens Boots Alliance, Inc. (WBA) $10.26 -5.26%
Illumina Inc. (ILMN) $84.20 -5.12%
Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $348.86 -4.68%
Autodesk Inc. (ADSK) $272.03 -4.48%
Incyte Corp. (INCY) $70.26 -4.34%
