The Dow Jones Industrial Average and other major stock indexes plunged Monday, as Wall Street battled with the fallout of President Donald Trump's tariffs and China's subsequent retaliation.
Big early losers on the stock market today included Apple, Nvidia and Tesla.
After the opening bell, the Dow Jones Industrial Average plunged around 1,500 points, or 3.9%. The S&P 500 tumbled 4.2%. And tech-heavy Nasdaq composite lost 4.5%.
Among exchange traded funds, the Invesco QQQ Trust fell 4.5%, while the SPDR S&P 500 ETF lost 4.2% after the open.
The 10-year Treasury yield ticked higher to 4.04% early Monday. And oil prices dropped further, as West Texas Intermediate futures traded near $60.35 per barrel.
Trump Tariffs: 'Sometimes You Have To Take Medicine'
President Trump said Sunday evening that he's "not intentionally engineering" a market sell-off. But he added, "Sometimes you have to take medicine."
He added that he won't make deals with other countries unless the bilateral trade deficits are eliminated.
President Trump's 10% baseline tariffs on all trading partners started Saturday, with the much-higher bilateral rates for most partners beginning April 9.
Trump announced the massive tariff hikes last week, pushing average U.S. rates to the highest in a century. Those and other Trump tariffs are expected to have a massive impact on the economy and prices, significantly raising the risk of recession or stagflation.
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IPhone maker Apple, which plunged another 7.3% Friday, closed at its lowest level since May. Shares sold off 6.3% Monday morning after Wedbush cut its price target on Apple stock by 23% to 250 from 325. The bear case is 160, and the bull case — which assumes tariff removal or exemption — is back to 325.
Tesla stock skidded nearly 9% Monday after Wedbush slashed price targets on Tesla stock by 43% to 315 from 550. Shares of the Elon Musk-led company are around 50% off their record high of 488.54, reached on Dec. 18.
Lastly, Nvidia stock tumbled 7.1% in Monday's trading, as the artificial intelligence giant tumbled to its lowest level since early August.
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Stock Market Today: Inflation Data, Earnings Season Loom
Inflation data will be in critical focus in the week ahead, as Trump tariffs push up prices as well as rate cut expectations.
The consumer price index, out Thursday, is expected to show a not-great 0.3% rise in the core CPI as the markets were hoping for a smaller increase. The CPI previews the Fed's primary inflation rate. Later in the week, on Friday, the producer price index is scheduled. And the University of Michigan consumer sentiment index also arrives Friday.
Meanwhile, first-quarter earnings season kicks off this week, with results from Delta Air Lines, JPMorgan Chase, Wells Fargo and BlackRock.
Finally, Taiwan Semiconductor Manufacturing will report its sales for the month of March early Thursday, previewing its first-quarter revenue.
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Dow Jones, Major Indexes Dive
Blue chips on the Dow Jones Industrial Average plunged 5.5% on Friday, putting the index back at its lowest level since May. The S&P 500 dived 6%, while the Nasdaq composite plummeted 5.8%.
Following big losses in recent sessions, now is an important time to read IBD's The Big Picture column for how to handle the current market and to track the updated exposure level.
Among the best companies to watch in the current stock market are Ollie's Bargain Outlet, Spotify Technologies and TJX.
Along with Apple and Nvidia, Dow Jones components making notable moves this week were Amazon.com, Microsoft and Coca-Cola.
Check out IBD MarketSurge's "Breaking Out Today" list for top growth stocks that are moving above correct buy points. Check for potential breakouts on the "Near Pivot" list. To find additional stock ideas, check IBD Stock Lists like IBD 50, Big Cap 20 and Stocks Near A Buy Zone.
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Dow Jones Stocks: Warren Buffett Holding Gives Up Buy Point
Dow Jones component and Warren Buffett holding Coca-Cola is trying to break out past a 73.22 buy point in a cup with handle, according to MarketSurge chart analysis. But shares dropped another 3.3% in morning action Monday, threatening to extend Friday's decline.
Outside the Dow, IBD Leaderboard stock Ollie's Bargain Outlet broke out past a 115.42 buy point in a double bottom last week, but is just below the entry. Shares lost 5.6% Monday.
Music streaming giant Spotify has formed a cup with handle that has a 621.20 buy point. Spotify stock plunged 4.9% Monday.
Finally, off-price retailer TJX is attempting to clear a 127.58 buy point in a double bottom. TJX stock moved down 2% in early morning trading.
However, now is not a good time to buy stocks as the S&P 500 has tumbled below its 200-day moving average and the Nasdaq is in a bear market. IBD currently recommends 0% to 20% stock exposure in the current market.
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Stock Market: Companies To Watch
These are four stocks in or near buy zones in Monday's stock market, including a Dow Jones leader.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| Coca-Cola | 73.22 | Cup with handle | |
| Spotify | 621.20 | Cup with handle | |
| TJX | 127.58 | Double bottom | |
| Ollie's Bargain Outlet | 115.42 | Double bottom |
Source: IBD Data as of April 7
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Dow Jones Leaders: Amazon, Microsoft
Magnificent Seven stocks are back near their recent lows following heavy selling pressure this week. Dow Jones component Amazon hit a fresh recent low during Friday's losses. And Amazon stock lost 3.4% early Monday.
Finally, software giant Microsoft fell 3.4% Monday. Shares reached a new 52-week low Friday.
Be sure to follow Scott Lehtonen on X at @IBD_SLehtonen for more on growth stocks, the Dow Jones Industrial Average and the stock market today.
