The Dow Jones Industrial Average and the other major indexes took a sharp dive Monday after President Donald Trump said tariffs on Mexico and Canada will go ahead. Tesla reversed lower while Nvidia got hammered. And Warren Buffett gave a warning on the economy while bitcoin gains melted away on the stock market today.
Stocks started off higher as they looked to build on Friday's encouraging late rebound, but things ultimately went awry. The Dow reversed lower, falling nearly 650 points, or 1.5%. Verizon Communications fared best in the Dow as it rose nearly 2%. Nvidia lagged the group badly.
The Nasdaq composite was sitting at session lows as it tumbled 2.6%. The tech-heavy index was testing its 200-day moving average.
Former Leaderboard stock AppLovin fared best on the Nasdaq as it jumped more than 3%. Broadcom, which reports earnings this week, plunged more than 6%. The semiconductor space as a whole was under pressure.
Stock Market Today: IBD 50 Skids
The benchmark S&P 500 saw opening gains evaporate. It dropped 1.8% as the bears took control in afternoon trade. S&P 500 sectors were mixed on the stock market today, but with a bias to the downside. Consumer staples and real estate were strongest, with technology and energy the weakest.
Erie Indemnity impressed, rising more than 5%. However, Palantir Technologies reversed lower, falling nearly 2%. Embattled Super Micro Computer was among the laggards as it plummeted 13%, slipping below the 50-day line in the process.
Small caps briefly flirted with positive territory on the stock market today. But the Russell 2000 index reversed lower, falling nearly 3%.
Growth stocks also got hit. The Innovator IBD 50 exchange traded fund tumbled nearly 4%.
Volume was lower vs. Friday on the New York Stock Exchange but higher on the Nasdaq, according to early data.
Trump Says Tariffs Are 'All Set,' Buffett Gives Warning
The U.S. is getting set to impose tariffs on Canada and Mexico, as well as an additional levy on China, starting Tuesday. When asked about the matter Monday, President Trump said there is "no room left for Mexico or for Canada."
"The tariffs, you know, they're all set. They go into effect tomorrow," Trump said.
And while Warren Buffett, the chief executive of Berkshire Hathaway, tends to stay out of politics, he spoke out on the issue of tariffs. The Oracle of Omaha made his negative opinion clear, saying they are "an act of war, to some degree."
"Over time, they are a tax on goods. I mean, the Tooth Fairy doesn't pay them," Buffett told CBS News.
His comments for CBS followed those of Treasury Secretary Scott Bessent, who said Americans should not worry about tariffs causing higher prices. Bessent told CBS News that the Trump administration is taking a "holistic approach" that will include tariffs, regulation cuts and cheaper energy.
"I'm expecting inflation to continue dropping over the year," Bessent said.
Stock Market Today: Issues Test 50-Day Line
A few noteworthy stocks tested buyers at the 50-day moving average Monday. Falling beneath that level is a key sell signal.
NRG Energy, a gas supplier, slipped below the key level in above-average volume. It is also back below a flat-base entry of 103.14. Overall performance at the Texas utility stock is solid, with its IBD Composite Rating sitting at 81 out of 99.
United Natural Foods plunged more than 8% and is also just below the important technical benchmark. In addition, the food wholesaler has triggered the 8% sell rule from a cup base buy point of 32.20.
The stock has been among the top 2% of issues in terms of price performance over the past 12 months.
APi Group has fallen below its 50-day line in volume that was well above average. The safety and security service play is also close to triggering the 7% sell rule from a 39.10 entry.
The MarketSurge Growth 250 stock has an IBD Composite Rating of 93.
3:21 p.m. ET
Nvidia Stock Dives Amid China Export Fears
Artificial intelligence play Nvidia was the biggest drag on the Dow Jones today as it plunged nearly 9%. It lost ground on both its 50-day and 200-day moving averages in the process, a distinctly bearish look.
The stock was getting spanked amid fears its highly coveted AI chips could be making their way to China despite export controls. On Monday, the Singapore government revealed it charged three men in a case that saw them potentially breach the controls.
Two Singaporean and one Chinese national have been charged over the alleged scheme, which saw servers containing Nvidia chips being sent to Malaysia.
"The question is whether Malaysia was a final destination or from Malaysia it went to somewhere else, which we do not know for certain at this point," Singapore home affairs minister K. Shanmugam said, according to Barron's.
He also said there "there may have been false representation on the final destination of the servers."
American firms Dell and Super Micro Computer supplied the servers, according to Shanmugam. It comes as competition ramps up between U.S. firms like OpenAI and Chinese rivals such as DeepSeek.
Magnificent Seven: Tesla Gains After This Call Disappear
Tesla moved higher in early trade following a bullish call from a Wall Street expert. Morgan Stanley analyst Adam Jonas said the electric vehicle maker is his top pick among U.S. auto stocks.
Rather than the vehicles themselves, he touted the firm's capabilities in robotics and automation. According to Jonas, the stock is in "transition from an automotive 'pure play' to a highly diversified play on AI and robotics."
Jonas now has an overweight rating and a 430 target for Tesla stock. Despite the bullish call, Tesla continues to look distinctly bearish. The stock reversed lower from initial highs, and was down more than 2% in afternoon trade.
While it is getting support at the 200-day moving average, the stock is now down nearly 29% so far this year. It also has an IBD Composite Rating of just 68.
The rest of the so-called Magnificent Seven also had tough sessions. Amazon.com plunged while Google-parent Alphabet dropped nearly 2%. Microsoft dipped more than 2%.
Meta Platforms fell 2% while Apple dropped more than 1%.
2:05 p.m. ET
Stock Market Today: More Issues Test Entries
A couple of issues were also teasing buy points in afternoon trade. Atmos Energy rallied above a cup base entry of 152.65, according to MarketSurge analysis. The relative strength line is hitting fresh heights, a bullish sign.
The natural gas utility stock has a strong IBD Composite Rating of 92 out of 99. It is among the top 12% of issues in terms of price performance over the past 12 months.
Analysts see full-year per-share earnings growth of 5% this year before accelerating to 8% growth in 2026.
Essex Property Trust has moved near the actionable zone with a 314.65 buy point.
Overall solid performance is reflected in its Composite Rating of 91. The stock offers a dividend yield of 3.3%, which is better than the S&P 500 average.
MarketSurge data shows that 58% of shares are currently held by funds.
Bitcoin, These Crypto Stocks See Gains Fade
President Trump boosted a cryptocurrency rally Monday, but gains were fading in afternoon trade. They got a lift after Trump gave further details of plans for a U.S. crypto strategic reserve. He said it will include bitcoin, ethereum, XRP, Solana's SOL token and Cardano's ADA cryptocurrency.
The price of bitcoin reversed lower, falling around 5% over the past 24 hours to slightly more than $87,000 per token, according to CoinDesk. It also remains well off recent highs.
Coinbase Global reversed lower, while Robinhood Markets skidded. Coinbase remains stuck below its 200-day moving average, according to MarketSurge analysis.
Other cryptocurrency stocks were under pressure. MicroStrategy rocketed more than 11% but reversed and was down in recent action.
Rival bitcoin mining play Riot Platforms reversed lower.
12:31 p.m. ET
ISM Manufacturing Survey Misses Views
The Institute for Supply Management's monthly manufacturing index came in at 50.3. This was lower than economist expectations for 50.6. Numbers above 50 indicate expansion.
The survey showed that new orders and backlogs are contracting, supplier deliveries are slowing and prices are increasing.
Timothy R. Fiore, who chairs the Institute for Supply Management Manufacturing Business Survey Committee, said Trump administration policies are already having an effect.
"Demand eased, production stabilized, and destaffing continued as panelists' companies experience the first operational shock of the new administration's tariff policy," he said in a news release.
"Prices growth accelerated due to tariffs, causing new order placement backlogs, supplier delivery stoppages and manufacturing inventory impacts," Fiore went on to say. Although tariffs do not go into force until mid-March, spot commodity prices have already risen about 20 percent."
Stock Market Today: Kroger Dips Amid CEO Exit
One noteworthy stock that fell on the stock market today was Kroger. The grocery giant fell on news that CEO Rodney McMullen had resigned amid a board investigation into his personal conduct.
The company said in a statement that his conduct was "inconsistent with Kroger's Policy on Business Ethics," though it also said it was "unrelated to the business."
His ousting comes after Kroger's $25 billion acquisition of Albertsons was blocked by a federal judge. The firm has appointed Ronald Sargent as chairman of the board of directors and interim CEO. Sargent has been a Kroger director since 2006 and has served as the lead director since 2017.
Kroger fell on the stock market today but managed to avoid a test of the 50-day moving average. Shares are trading near a buy point at 63.59, MarketSurge analysis shows.
Overall performance is strong but not quite ideal. Kroger stock holds an IBD Composite Rating of 88.
These Stocks Test Entries
A number of stocks were testing entries on the stock market today despite the mixed action.
A recent initial public offering, Karman Space & Defense has cleared an IPO-base buy point of 32.39. The defense and space systems company went public on Feb. 13 at an IPO price of 22.
Buying the stock is a risky proposition given the company's lack of a track record. At the moment, there are also no full-year earnings estimates for Karman on FactSet. Taking a pilot position at most, especially given the current challenging conditions, would be a prudent approach.
Fidelity National Financial is near a buy zone with a cup-base entry of 64.83.
This is a first-stage base, a bonus. The relative strength line is hitting fresh highs, a further bullish indicator. Overall performance is strong here, with FNF stock's IBD Composite Rating coming in at 92 out of 99. But its EPS Rating of 69 is suboptimal.
Please follow Michael Larkin on X at @IBD_MLarkin for more analysis of growth stocks.
