Wall Street at over six-month lows following the opening bell on Wall Street.

The S&P 500 and Nasdaq fell to their lowest levels in over six months on Monday as investors retreated from equities amid mounting concerns over Donald Trump’s escalating trade war.

Global stock markets slumped, gold prices surged to new highs, and US government bonds gained ground after Trump announced that the latest round of tariffs this week would apply to all countries.

US markets have been under pressure throughout the year, with fears of a global economic slowdown and rising inflation intensifying in response to the administration’s tariff measures.

In New York, the tech-heavy Nasdaq Composite sank 2.3% to 16,918.12. The Dow Jones Industrial Average fell 0.7% to 41,302.83, while the S&P 500 dropped 1.3% to 5,508.53.

The S&P 500 has now fallen 10.7% from its peak on February 19, marking its most significant decline since 2022. This marks the 30th time the index has experienced a drop of more than 5% from a high since the market bottomed in March 2009. Each of those corrections felt like the end of the world at the time.

Tesla shares have fallen by 5.7% in early trading, now priced at $248.72. Meanwhile, shares in Trump Media & Technology Group Corp have declined by 4.7%.

Investor sentiment across Wall Street mirrors the anxiety seen in Europe and Asia, following Donald Trump’s weekend warning that Wednesday’s reciprocal tariffs will “start with all countries — essentially all of the countries that we’re talking about.”

These recent losses have put global stock markets on track for their worst March since 2022, as mentioned in the introduction.

As analysts at Investec explain: Following a turbulent period of uncertainty, both businesses and financial markets are bracing for the US administration’s planned announcement of additional tariffs on April 2. Behind closed doors, negotiations are underway to soften the potential blow to trade on what President Trump has dubbed ‘Liberation Day’.

The outcome of these talks remains uncertain. For the proposed tariffs to significantly contribute to funding tax cuts, they would need to be substantial and long-lasting. However, it’s not just US policies that will affect the global economy—retaliatory measures from other countries will play a role too.

On the other hand, the upcoming surge in European defence spending could help offset some of the pressure from US policy changes. The impact of these changes is likely to vary by country. With so many unknowns, uncertainty is expected to continue beyond April 2, leaving room for both markets and analysts to reassess the economic outlook in the coming months.