U.S. markets suffered a steep selloff Monday as President Donald Trump announced sweeping new tariffs, extending last week’s losses and driving declines across all major sectors.

What Happened: The S&P 500 tracked by The SPDR S&P 500 (NYSE: SPY) closed at 5,849.72, sinking 1.76%, continuing its retreat from 5,983 on Feb 24. The Nasdaq-100 monitored by Invesco QQQ Trust, Series 1 (NASDAQ:QQQ) fell to 20,425.58, down from 21,352 a week earlier, marking a significant correction from recent highs.

Technology stocks bore the brunt of the selloff, with NVIDIA Corp. (NASDAQ:NVDA) plummeting 8.63% and ARM Holdings (NASDAQ:ARM) dropping 8.05%. The sector’s decline follows a brutal week where AppLovin (NASDAQ:APP) had already lost 20.64% and Super Micro Computer (NASDAQ:SMCI) fell 19.67% between Feb. 24-28, according to data from Benzinga Pro.

However, some stocks showed positive performance amid the broader market selloff, according to the Benzinga Stock Heat Map.

In chemicals and allied products, Eli Lilly & Co. (NYSE:LLY) gained 0.83%, while Procter & Gamble Co. (NYSE:PG) and Johnson & Johnson (NYSE:JNJ) also edged higher. Philip Morris International Inc. (NYSE:PM) rose 2.33% in the tobacco sector. In telecom, T-Mobile US Inc. (NASDAQ:TMUS) and Verizon Communications Inc. (NYSE:VZ) climbed over 1.5%. Transport by air saw PHI Group Inc. (NASDAQ:PHIG) gain 2.3%. Meanwhile, Coca-Cola Co. (NYSE:KO) and PepsiCo Inc. (NASDAQ:PEP) both advanced over 1.3%.

Industrials saw significant pressure, with Vertiv Holdings (NYSE:VRT) falling 10.09% and FTAI Aviation (NASDAQ:FTAI) down 7.89%. In healthcare, BeOne Medicines dropped 10.10% while Hims & Hers Health (NYSE:HIMS) declined 9.77%.

Financial stocks weren’t spared, with Robinhood Markets (NASDAQ:HOOD) shedding 6.51% and SoFi Technologies (NASDAQ:SOFI) losing 6.40%. The slide continued a trend from last week when PayPal Holdings (NASDAQ:PYPL) had already declined 5.58%.

Consumer discretionary and staples both tumbled, with Li Auto (NASDAQ:LI) plunging 10.96% and Dollar Tree (NASDAQ:DLTR) falling 6.02%. Energy stocks like Ovintiv (NYSE:OVV) dropped 8.65%, while utilities Vistra (NYSE:VST) and Constellation Energy (NASDAQ:CEG) both fell 7.40%.

Why It Matters: The catalyst for Monday’s selloff was Trump’s announcement of 25% tariffs on imports from Canada and Mexico, plus an additional 20% tariff on Chinese goods. The Kobeissi Letter noted these increases would raise the U.S. average effective tariff to approximately 20%, levels not seen since the Great Depression.

Market strategist Tom Lee of Fundstrat suggested this week could mark the bottom for stocks in the first half of 2025, noting “a lot of bad news has gotten priced in” and that retail sentiment has reached bearish levels comparable to fall 2022.

Wall Street remains divided on the tariffs’ impact, with Peter Schiff warning of domestic economic harm while others like Anthony Pompliano pointed to Taiwan Semiconductor‘s (NYSE:TSM) $100 billion U.S. investment announcement as evidence tariffs might boost domestic manufacturing.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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