U.S. stocks had a rough Monday, with investors selling across major indexes as tariff uncertainty flared again and pressure intensified on software and cybersecurity names tied to AI disruption fears. The mood was classic risk-off: stocks down, gold up, and the dollar softer.
The S&P 500 fell 1% to 6,837.75, the Dow Jones Industrial Average dropped 1.7% to 48,804.06, and the Nasdaq Composite slipped 1.1% to 22,627.27. Smaller companies were hit too, with the Russell 2000 down 1.6% to 2,620.99.
What drove the selloff
The immediate trigger was renewed tariff pressure after President Donald Trump ramped up his latest trade measures, adding another layer of uncertainty for businesses and investors already trying to price in shifting policy risk. AP also noted continued selling in companies seen as potential losers in the AI transition, especially in cybersecurity and software, where investors worry AI-powered competitors could squeeze profits.
That combination matters because it hits both sides of the market story at once:
- Macro risk (trade/tariffs, policy uncertainty)
- Micro risk (earnings pressure from AI competition)
When both show up together, markets tend to reprice quickly.
The “risk-off” signals outside stocks
Monday’s move wasn’t just about equity indexes. AP reported that the U.S. dollar edged lower, gold continued rising, and bitcoin briefly fell below $64,000 before staying above its earlier-February low. That mix suggests investors were hedging uncertainty rather than fully embracing risk assets.
Where the market stands for 2026 so far
Even after Monday’s drop, performance this year is mixed rather than uniformly weak:
- S&P 500: down 7.75 points (-0.1%)
- Dow: up 740.77 points (+1.5%)
- Nasdaq: down 614.72 points (-2.6%)
- Russell 2000: up 139.08 points (+5.6%)
That split is telling. The Dow and small caps have held up better, while the Nasdaq remains more exposed to the market’s current AI valuation and disruption anxiety.
Bottom line
Monday looked like a market repricing risk in real time: trade-policy uncertainty on one side, AI-driven sector disruption on the other. Until investors get clearer signals on both fronts, expect more days where indexes move less on fundamentals and more on what the next headline implies for margins, policy, and positioning.
