US stock indices extended losses on Monday amid worries over reciprocal tariffs as President Donald Trump’s “Liberation Day” is approaching.
Trump has pledged to impose sweeping levies against trading partners on April 2.
As of 10:10 AM Eastern time, the S&P 500 was down 0.8 per cent, the Dow Jones Industrial Average was down 0.3 per cent, and the Nasdaq Composite was 1.7 per cent lower.
Amid tariff uncertainties, Goldman Sachs has raised the probability of a US economic recession to 35 per cent from 20 per cent.
It also reduced its year-end target for the S&P 500 and forecast more rate cuts by the Federal Reserve.
In the bond market, the yield on the 10-year Treasury fell to 4.21 per cent from 4.27 per cent late on Friday.
Gainers and losers
Among the megacap stocks, Nvidia fell 5.3 per cent, Microsoft slid 12.6 per cent, and Tesla lost 7 per cent .
Shares of pharma companies slid after reports that the Food and Drug Administration’s (FDA) top vaccine official had been forced to quit.
Moderna stock tumbled 13 per cent, while Pfizer stock lost 2.2 per cent.
Gene therapy companies Taysha Gene Therapies and Solid Biosciences shed 18.6 per cent and 15.2 per cent.
United Airlines shares declined over 6.9 per cent amid news that Canadians were pulling back on trips to the United States due to the tariffs.
Bullion
Gold prices rallied to record high on Monday on trade war worries.
Spot gold was up 0.7 per cent to $3,103.99 per ounce by 09:47 AM ET (1347 GMT), having hit a record $3,128.06 earlier. US gold futures were up 0.7 per cent at $3,136.10.
Spot silver slipped 1.7 per cent to $33.53 an ounce, platinum was down 0.6 per cent to $977.90 and palladium gained 0.2 per cent to $973.68.
Crude oil
Oil prices climbed on Monday on worries supplies could fall if Trump follows through on threats to impose more tariffs on buyers of Russian oil.
Brent futures rose $1.04, or 1.4 per cent, to $74.67 a barrel at 10:50 AM EDT (1450 GMT), while US West Texas Intermediate crude rose $1.69, or 2.4 per cent, to $71.05.
On Sunday, the US president said he was “pissed off” at Russian President Vladimir Putin and will impose 25%-50% secondary tariffs on buyers of Russian oil if he feels Moscow is hindering Trump’s efforts to end the war in Ukraine.
