Saturday, February 8, 2025

Market Jitters: Dow Stumbles While S&P 500 Dips Below 6,000

AP·Yonhap
AP·Yonhap

The New York stock market experienced a widespread decline on Monday.

Although U.S. President Donald Trump announced a one-month delay on tariffs against Mexico, the three major indices all fell due to concerns over the ongoing trade war. The Nasdaq declined by over 1%.

Tesla CEO Elon Mus, a key figure in Trump’s second administration, saw significant losses for Tesla amid fears that the company would become a target of trade retaliation.

Decline

The three major indices in the New York stock market started with sharp declines but recovered following the news of the delay on tariffs against Mexico.

The Dow Jones even reversed its trend and rose in the latter half of the trading session.

However, it faced another round of losses towards the end.

The Dow closed down 122.75 points (0.28%) at 44,421.91.

The Standard & Poor’s 500 dropped 45.96 points (0.76%) to close at 5,994.57, while the Nasdaq fell by 235.49 points (1.20%) to finish at 19,391.96.

The S&P 500 fell below the 6,000 mark for the first time since January 17.

The CBOE Volatility Index (VIX), the “Wall Street Fear Index,” surged by over 13%. It jumped 2.19 points (13.33%) to 18.62.

Experts, however, believe the impact of these tariffs will be short-lived. They remain optimistic that the New York stock market, including the S&P 500, will continue its upward trend this year.

Tesla’s Sharp Decline

Tesla saw a drop of $20.92 (5.17%), closing at $383.68.

Concerns emerged that countries facing Trump’s tariffs might target Tesla as a prime example of retaliation, especially with Musk, the head of the newly established Department of Government Efficiency (DOGE) and CEO of Tesla, in the spotlight.

General Motors and Ford, which have assembly lines and parts factories in Mexico and Canada, also struggled.

General Motors fell by $1.56 (3.15%) to close at $47.90, while Ford dropped $0.19 (1.88%) to finish at $9.89.

Nvidia Drops 2.8%

Semiconductor company Nvidia saw a decline of $3.41 (2.84%), closing at $116.66.

Apple also fell significantly, dropping $7.99 (3.39%) to $228.01.

Alphabet declined by $2.79 (1.37%) to $201.23, and Microsoft (MS) closed down $4.14 (1.00%) at $410.92.

Amazon slipped by $0.26 (0.11%) to $237.42.

Among the M7, only Meta Platforms saw a rise.

Meta, which has an open-source AI model that is more open than China’s DeepSeek’s open weights, rose by $8.28 (1.20%) to close at $697.46 amid optimism about AI.

International Oil Prices Rise

After falling over the weekend, international oil prices bounced back.

However, the rise was significantly curtailed after announcing a one-month tariff delay against Mexico.

West Texas Intermediate (WTI), the benchmark for U.S. oil, saw its March futures surge by 3.65% to reach $75.18 per barrel in early trading but gave back some gains following the news of the tariff delay.

WTI finished up $0.63 (0.87%) at $73.16 per barrel.

Brent crude, the international benchmark, closed at $75.96 per barrel, up $0.29 (0.38%) for the April futures contract.

Hot this week

After the Holidays, Beware: Intense Workouts Could Accelerate Aging

Excessive exercise can increase reactive oxygen species, accelerating aging, but hyperbaric oxygen therapy may help counteract this effect.

Nvidia Surges 5.4%, While Tesla Drops 3.6% in Latest Market Moves

Wall Street sees gains with Nvidia soaring while Tesla and Alphabet stocks tumble amid tariff concerns and disappointing earnings.

Michael Jordan’s Son Arrested for Drunk Driving and Drug Possession in Florida

Marcus Jordan, son of Michael Jordan, was arrested for DUI and cocaine possession after fleeing police in Florida.

Goldman Sachs Sees Little Disruption in Energy Prices from Tariffs on U.S. Goods

Goldman Sachs forecasts minimal impact on energy prices from China's tariffs on U.S. goods and Canadian crude oil this year.

Health Crisis Hits Former Chancellor Schröder as He Misses Key Nord Stream Testimony

Former German Chancellor Gerhard Schröder is hospitalized for burnout symptoms amid investigations into his role in the Nord Stream project.

Topics

After the Holidays, Beware: Intense Workouts Could Accelerate Aging

Excessive exercise can increase reactive oxygen species, accelerating aging, but hyperbaric oxygen therapy may help counteract this effect.

Nvidia Surges 5.4%, While Tesla Drops 3.6% in Latest Market Moves

Wall Street sees gains with Nvidia soaring while Tesla and Alphabet stocks tumble amid tariff concerns and disappointing earnings.

Michael Jordan’s Son Arrested for Drunk Driving and Drug Possession in Florida

Marcus Jordan, son of Michael Jordan, was arrested for DUI and cocaine possession after fleeing police in Florida.

Goldman Sachs Sees Little Disruption in Energy Prices from Tariffs on U.S. Goods

Goldman Sachs forecasts minimal impact on energy prices from China's tariffs on U.S. goods and Canadian crude oil this year.

Health Crisis Hits Former Chancellor Schröder as He Misses Key Nord Stream Testimony

Former German Chancellor Gerhard Schröder is hospitalized for burnout symptoms amid investigations into his role in the Nord Stream project.

Trade War Fears Subside as Wall Street Makes Strong Comeback

Wall Street bounced back after a three-day slump, driven by tech stocks and optimism over trade negotiations despite ongoing tariff concerns.

U.S. Keeps Close Watch on Korean Immigrants Amid Deportation Concerns

The U.S. State Department is providing consular assistance to Korean nationals arrested during Trump's crackdown on illegal immigration.

Anthropic’s New AI Tool Blocks Jailbreaks and Harmful Content

AI companies enhance censorship to prevent "jailbreaking," with Anthropic introducing a constitutional classifier to block harmful content.

Related Articles