US stocks moved lower as investors reacted to President Donald Trump’s decision to increase global tariffs, though market swings remained far milder than the sharp volatility witnessed during last year’s tariff-driven sell-off.The S&P 500 declined 0.7%, while the Dow Jones Industrial Average dropped 618 points, or 1.2%, and the Nasdaq Composite slipped 0.7% in morning trade, as Wall Street assessed the implications of renewed trade tensions, AP reported.The weakness followed Trump’s announcement that temporary global tariffs would be raised to 15%, up from the 10% rate unveiled earlier after the US Supreme Court struck down sweeping “reciprocal” tariffs imposed under emergency powers. The move underscored continuing uncertainty over the direction of US trade policy.Investors remained cautious as the administration signalled it could explore alternative legal routes to impose more permanent tariffs, raising concerns among global trading partners. South Korea’s trade minister Kim Jung-kwan warned that uncertainty could intensify if new duties were introduced through other laws.Despite the decline, market reactions were relatively contained compared with the sharp turmoil seen when Trump first announced wide-ranging tariffs last year, suggesting investors expect prolonged negotiations and legal battles before clarity emerges.“Stocks got a boost Friday from the Supreme Court’s tariff ruling, but it quickly became clear that the decision was simply going to open a new chapter in the trade saga, not end it,” said Chris Larkin, managing director, trading and investing, at E-Trade from Morgan Stanley, AP quoted.The United States intends to honour existing trade agreements and expects partners to do the same, US Trade Representative Jamieson Greer said in a CBS News interview.Across asset classes, the US dollar edged lower against major currencies, while gold prices advanced as investors sought safer assets amid policy uncertainty. Bitcoin briefly fell below $65,000 before recovering above $66,000.Sectorally, airline stocks declined after severe weather disrupted travel across the US Northeast. United Airlines fell 4.7%, American Airlines dropped 4.3%, and Delta Air Lines lost 4.1%.Healthcare stocks saw sharp divergence after Novo Nordisk’s US-listed shares tumbled 15.1% following trial results showing lower-than-expected weight loss for its CagriSema drug, while rival Eli Lilly gained 3.4%.Domino’s Pizza rose 3.2% after reporting strong same-store sales and projecting further market-share expansion in 2026.Global markets showed mixed trends. Germany’s DAX slipped 0.6%, while France’s CAC 40 edged up 0.1%. In Asia, Hong Kong’s Hang Seng climbed 2.5% and South Korea’s Kospi rose 0.6%, while markets in Japan and mainland China remained closed for holidays.In bond markets, the yield on the 10-year US Treasury eased to 4.05% from 4.08% late Friday. Meanwhile, Federal Reserve Governor Christopher Waller indicated the central bank could skip a rate cut at its next meeting following strong job gains, marking a shift from his earlier stance supporting easier policy.
