Wall Street on Edge: Stocks React to Tariffs, Rate Speculation, and Market Uncertainty

Key Highlights:

• Stocks attempt a rebound: Dow up 0.6%, S&P 500 up 0.3%, Nasdaq dips 0.2%
• Trump’s tariff policies spark volatility: Market navigates trade war concerns
• Retail sales miss expectations: Inflation, tariffs pressure consumer spending
• Nvidia slides ahead of GTC: AI chipmaker’s stock retreats before big announcements

As Wall Street struggles to regain footing after weeks of turbulence, Monday’s trading session saw mixed results as investors wrestled with Trump’s latest tariff maneuvers, cooling retail sales data, and growing uncertainty around the Federal Reserve’s next move.

The Dow Jones Industrial Average climbed 244 points (0.6%), powered by strong gains in Walmart (WMT) and IBM (IBM), while the S&P 500 ticked up 0.3%. The Nasdaq Composite, however, slipped 0.2% as Nvidia (NVDA) fell ahead of its much-anticipated GTC conference.

Trade War Risks Shake Confidence

Trump’s aggressive tariff stance continues to send shockwaves through global markets. With Canada retaliating against U.S. steel and aluminum tariffs and the EU poised to slap a 50% levy on American whiskey, investors fear further economic fallout. Trump countered with threats of a 200% tariff on European wine and champagne, rattling consumer goods stocks.

“The uncertainty around tariffs and trade policy is unsettling for markets,” noted a Goldman Sachs strategist. “Investors don’t like surprises, and this administration is full of them.”

Retail Sales Miss Signals Economic Slowdown

Adding to market jitters, February retail sales rose just 0.2%, falling short of the expected 0.6%. The downward revision of January’s data (-1.2% from -0.9%) suggests that higher prices and trade-related cost pressures could be weighing on consumers.

Despite weaker spending, Treasury Secretary Scott Bessent dismissed concerns, calling the recent stock sell-off “healthy” and cautioning that there were “no guarantees” the U.S. would avoid a recession.

Nvidia Pulls Back Ahead of Key AI Event

Tech giant Nvidia (NVDA) slid 2% as investors awaited CEO Jensen Huang’s presentation at the company’s GTC conference. Expectations are high for the unveiling of the Blackwell Ultra AI chip and the next-gen Vera Rubin AI superchip. While Nvidia surged 8% last week, some traders are locking in gains before the event.

Investors Watching the Fed

All eyes are on the Federal Reserve’s two-day policy meeting beginning Tuesday. While no rate changes are expected, markets will be looking for signals on whether Trump’s unpredictable trade policies could shift the Fed’s outlook on inflation and interest rates.

With uncertainty at every turn, one thing is clear—volatility isn’t going away anytime soon.