US stocks plunge again ahead of Trump's new tariffs

Traders work on the floor of the New York Stock Exchange (NYSE) on March 28, 2025, in New York City. Spencer Platt/Getty Images/AFP

US stocks fell again on Monday while volatility surged, as traders grapple with uncertainty about a slew of new tariffs that President Donald Trump has penciled in for April 2.

Trump, who has been hyping Wednesday as "Liberation Day," has pledged to impose sweeping levies against trading partners on the date, but his administration has still not released a detailed plan about who or what will be impacted.

Around 30 minutes into trading, the Dow Jones Industrial Average dropped 0.3 percent at 41,465.70, while tech-focused Nasdaq Composite Index slipped 1.8 percent to 17,009.53.

The broad-based S&P 500 Index fell to its lowest level since September 2024 before reversing some losses to trade down 0.9 percent at 5,526.45.

"Right now investors are really trying to wrestle with what's coming down the pipe regarding tariffs," Steve Sosnick from Interactive brokers told AFP.

"And the messaging over the weekend from the president doesn't provide a lot of clarity," he added.

The CBOE Volatility Index, colloquially known as Wall Street's "fear gauge," jumped more than 10 percent before cooling slightly, reflecting the market uncertainty.

"I think the mood is very nervous out there today," said Sosnick.

Among individual companies, US aviation giant United Airlines slipped more than 6.9 percent amid news that Canadians were pulling back on trips to the United States due to the tariffs.

And drug maker Moderna's share price tumbled more than 11 percent as traders digested news that a top US Food and Drug Administration official had quit over disagreements with Trump's new health secretary, noted vaccine skeptic Robert F. Kennedy Jr.