U.S. stocks experienced a downturn on Monday, driven by renewed trade uncertainties following President Donald Trump's response to a Supreme Court decision. The S&P 500 index fell 0.385% in early trading in New York, as technology stocks weighed on the market, partially offset by gains in energy and health care sectors. Consumer discretionary and industrials also faced declines, while the Nasdaq 100 dropped 0.609%.
Tariff Confusion Impacts Market Sentiment
President Trump imposed a new, across-the-board 15% levy on U.S. imports after the Supreme Court ruled against his previous tariff regime. This move has sown fresh confusion around global trade, with Brian Reynolds, chief market strategist at Reynolds Strategy, describing the situation as triggering "mass confusion" in a note. However, Reynolds expects tariff rates to move lower from feared levels, potentially boosting profits this year, especially for small firms, which could modestly benefit the economy and equity prices.
Nvidia Stands Out Amid Market Weakness
Shares of Nvidia Corp. rose 1.6%, emerging as a bright spot ahead of its Wednesday earnings report. Aletheia Capital upgraded the stock to a buy, citing its undervalued status. Nvidia has been trading sideways for months and is among the lower performers in the S&P 500 this year, also noted as the most under-owned large-cap tech stock at the end of the fourth quarter.
Sector Performance and Other Market Moves
Technology stocks were modestly weaker overall, influenced by reports that OpenAI plans to spend about $600 billion on infrastructure by 2030, down from previous commitments. In contrast, energy stocks advanced as oil prices rose amid ongoing assessments of potential U.S.-led conflict with Iran.
In earnings news, Domino's Pizza Inc. rallied 4% after reporting better-than-expected U.S. comparable sales and increasing its dividend. Novo Nordisk AS ADRs sank 15% as its obesity shot CagriSema showed less weight loss than Eli Lilly & Co.'s rival in a trial, with Lilly gaining 3.3%. Shares of JPMorgan Chase & Co. were little changed ahead of a company update scheduled after the bell.
