The New York stock market continued its losses on Monday.
Investor sentiment took a hit late in the session after U.S. President Donald Trump confirmed he would proceed with the planned 25% tariffs on Mexico and Canada next week, ending a one-month delay.
While the Dow Jones Industrial Average ended slightly higher, the S&P 500 and Nasdaq indices fell for the third consecutive trading day since February 20.
Only Apple saw a modest increase among the Magnificent Seven big tech companies, while Warren Buffett’s Berkshire Hathaway, a bellwether for value stocks, reached a new all-time high. This suggests a potential shift from growth to value stocks in the market.
Three-Day Slide
The New York stock market attempted to rebound early in the session but eventually succumbed to selling pressure, with the Nasdaq declining.
The tech-heavy Nasdaq fell 237.08 points (1.21%) to close at 19,286.92.
The S&P 500, which broadly reflects market situations, fluctuated throughout the day and ultimately turned lower. It closed down 29.88 points (0.50%) at 5,983.25, slipping below the 6,000-point mark. The index had consistently held above 6,000 since regaining that level on January 21, except for a brief dip on February 3.
Both the S&P 500 and Nasdaq recorded their third consecutive day of losses.
The Dow Jones Industrial Average, comprising 30 blue-chip stocks, barely closed in positive territory. After climbing as much as 0.5% mid-session, the Dow faced late selling pressure and finished just 33.19 points (0.08%) at 43,461.21.
The CBOE Volatility Index (VIX), often referred to as Wall Street’s “fear gauge,” rose 0.77 points (4.23%) to 18.98.
“Tariffs on Mexico and Canada to Proceed as Planned”
During the press conference, Trump confirmed that tariffs on Mexico and Canada would be imposed next week as scheduled, following the end of the one-month delay.
Trump emphasized that the tariffs would be implemented “on time, on schedule.” indicating that the 25% tariffs would be applied.
He claimed that the U.S. has “been taken advantage of” by foreign countries imposing tariffs “on almost everything.”
Trump also stressed that the U.S. would implement “reciprocal tariffs” on countries that impose sales taxes, tariffs, and non-tariff barriers on U.S. products.
Trump’s tariff strategy particularly disadvantages the Magnificent Seven big tech companies, which rely heavily on global supply chains and international markets.
Berkshire Hits Record High While Magnificent Seven Declines
Value stocks, represented by Berkshire Hathaway, and growth stocks, exemplified by the Magnificent Seven, performed divergently on this day.
Berkshire Hathaway’s Class A shares surged $28,735.49 (4.00%) to close at a record high of $747,485.49.
The more accessible Class B shares also jumped $19.68 (4.11%) to $498.42.
In contrast, Apple was the sole gainer among the Magnificent Seven.
Apple shares rose $1.55 (0.63%) to $247.10.
Nvidia, which will report quarterly earnings after the market closes on February 26, tumbled $4.15 (3.09%) to $130.28, while Tesla dropped $7.27 (2.15%) to $330.53.
Meta Platforms extended its losing streak to five consecutive trading days, falling $15.42 (2.26%) to $668.13.
After an impressive 20.2% rally over 20 trading days until February 14, Meta has since reversed course, declining 9.30% over the past five days.
Although not part of the Magnificent Seven, AI software firm Palantir, which recently hit an all-time closing high of $124.62 on February 18, has fallen for four straight days, adding to the pressure on growth stocks.
Palantir’s price plummeted $10.67 (10.53%) to $90.68, a 27.2% decline over four days.
International Oil Prices Rebound After Four-Day Slide as U.S. Sanctions Iranian Oil Exports
Global oil prices rebounded after four days of declines.
The U.S. imposed additional sanctions on Iranian oil exports, reigniting concerns about supply disruptions.
The U.S. Treasury and State Departments sanctioned individuals, companies, and vessels from Iran, China, India, and the United Arab Emirates (UAE) involved in transporting Iranian oil.
However, the gains were limited as investors closely monitored the Ukraine peace negotiations, which could result in the resumption of Russian oil supply.
Brent crude rose by $0.35 (0.47%) to settle at $74.78 per barrel for the front-month April contract.
West Texas Intermediate (WTI), the U.S. oil benchmark, gained $0.30 (0.43%) to close at $70.70 per barrel for April delivery.
