US stocks join global selloff on Trump tariffs

Wall Street stocks dropped Monday, joining overseas markets in retreating after US President Donald Trump announced tariffs on Canada, Mexico and China.

Trump later modified his weekend tariff announcement, suspending the levies on Mexico for 30 days following talks with his Mexican counterpart.

But all three major US indices still ended the day lower, with the Dow Jones Industrial Average falling 0.3 percent to 44,421.91.

The broad-based S&P 500 fell 0.8 percent to 5,994.57, while the tech-rich Nasdaq Composite Index shed 1.2 percent to 19,391.96.

The tariffs are "considered a cost that will likely push prices higher and growth lower," said Jack Ablin of Cresset capital, who noted Trump has threatened tariffs on other countries.

"The market is adapting not just to more tariffs, but more headline risk," he said.

Monday's session underscored the greater exposure of some sectors to tariffs compared with others.

Among those falling were automakers like General Motors, down 3.2 percent, homebuilders such as Lennar, down 3.9 percent, and agricultural equipment maker Deere & Co., down two percent.

But the reaction in other sectors was muted. Companies in finance, insurance and telecommunications, either advanced or experienced small declines.

Besides trade negotiations, other key events this week include quarterly earnings from Google parent Alphabet and Ford and January US jobs data.

(AFP)