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U.S. stocks plunged Monday after the ISM manufacturing index came in lower than expected at 50.3, as new orders contracted and the price measure surged. Investors are also cautious ahead of planned tariffs on Mexico and Canada scheduled to come into effect on Tuesday.
The S&P 500, Nasdaq Composite and Dow Jones Industrial Average all closed significantly lower. The Dow fell 650 points, or about 1.5%, while the S&P 500 was off 1.8% and the Nasdaq closed down 2.6%.
Automakers, among the companies most affected by tariffs, gave up earlier gains and fell after President Trump reiterated that the duties will go into effect tomorrow. Ford (F-2.25%) dropped 1.7%, General Motors (GM-4.46%) declined 3.6% and Stellantis (STLA-3.34%) slipped 3%. All three have plants in Mexico and Canada. Tesla (TSLA-4.43%) fell 2.8%.
Nvidia (NVDA-9.60%), Super Micro Computer (SMCI-13.52%), and Dell (DELL-7.60%) shares plunged Monday after Singapore said it’s investigating whether servers shipped to Malaysia containing chips barred from China ended up in the mainland. Stock in Intel (INTC-4.83%), Broadcom (AVGO-6.94%) and TSMC (TSM-4.71%) also declined.
Kroger (KR-3.17%) stock fell 2.9% after CEO Rodney McMullen resigned following an investigation into his personal conduct. The grocery chain unveils its earnings report on Thursday.
Weyerhaeuser (WY+4.02%) stock gained 4.3% after Trump ordered a probe of lumber imports on national security grounds. Las Vegas Sands’ (LVS+0.51%) stock 1.6% rose after the casino operator completed a debt restructuring involving its Marina Bay Sands liabilities.