US stocks tank as Trump moves forward with tariff threats

U.S. STOCKS TANK AS TRUMP MOVES FORWARD WITH TARIFF THREATSWall Street stumbled on Monday as President Donald Trump confirmed his promised tariffs against Canada and Mexico will go into effect on Tuesday, just hours after data signaled tariff threats and policy uncertainties could easily tip the U.S. economy into contraction.That didn't sit well with many investors. The selloff sent all three major U.S. indexes sharply lower. Economically sensitive FANGS , chips , and small caps underperformed the broader market.The S&P 500 notched its biggest daily percentage drop since Dec. 18.Stocks steepened their dive late in the session after President Trump confirmed that 25% tariffs on Canada and Mexico will go into effect on Tuesday, a move which will affect about $900 billion in annual imports.This follows the Oval Office shouting match between U.S. President Trump and Ukrainian President Volodymyr Zelenskiy, on Friday, which did little to endear the United States to its allies.Survey data from S&P Global and the Institute for Supply Management showed new orders and employment contracting and spiking input prices, a double-whammy of softening demand and rising price growth that could result in the nightmare scenario of stagflation. Construction spending unexpectedly retreated as crucial raw materials (lumber, copper) face tariff-related price spikes.Fourth-quarter earnings season is just a few strides from the finish line, with 480 of the companies in the S&P 500 having reported as of Friday, according to LSEG.Discount retailer Target is due to post results tomorrow, and analysts forecast a 24% year-over-year drop in EPS. The company's guidance and its conference call remarks will be parsed for clues regarding the path forward for consumer demand. Walmart's earnings, along with plunging consumer confidence and recent weakness in retail sales and consumer outlays, suggest the unappealing brew of high interest rates, still-elevated inflation and policy uncertainty has Americans watching their purse strings.Here's your closing snapshot:(Stephen Culp) *****FOR MONDAY'S EARLIER LIVE MARKETS POSTS:AMID UNCERTAINTY, RELATIVE VALUE TRADES MAY OFFER RELIEF - CLICK HEREGAUGING THE CRYPTO ETF FILING CRAZE - CLICK HEREBARKING TARIFF UNCERTAINTIES START TO BITE: PMI, CONSTRUCTION SPENDING - CLICK HEREU.S. STOCKS MIXED AFTER DATA, EYE TARIFFS - CLICK HERELOW VOLATILITY, MOMENTUM MAKE AN EARLY MOVE - CLICK HEREEUROPEAN DEFENCE SECTOR: MORE GAINS ON THE HORIZON? - CLICK HERECHINA STOCKS, WHAT'S NEXT AFTER 40% RALLY? - CLICK HERECRYPTOCURRENCIES HAVE THEIR "TRUMP PUT" - CLICK HEREDEFENCE NAMES SURGE, BROADER MARKET MIXED - CLICK HEREEUROPE BEFORE THE BELL: FUTURES HIGHER, MARKETS SET FOR DEFENCE BOOST - CLICK HERETRUMP FLAGS CRYPTO RESERVE, MUM ON FUNDING - CLICK HERE