US sharemarkets fell sharply on Monday as investors grappled with mounting fears about artificial intelligence disruption and renewed tariff uncertainty. The Dow Jones Industrial Average dropped 821 points, or 1.66%, to 48,804.06. The S&P 500 declined 1.04% to 6,837.75, leaving it back in negative territory for 2026, while the Nasdaq Composite fell 1.13% to 22,627.27.
Losses were concentrated in technology and financial stocks. IBM plunged 13% after new artificial intelligence programming developments heightened competitive pressures. Microsoft fell 3% and CrowdStrike dropped nearly 10%, extending weakness across the software sector. Financial names also came under pressure, with American Express down 7% and Mastercard retreating almost 6%.
By contrast, defensive stocks outperformed, with Walmart and Procter & Gamble rising more than 2%.
Tariff uncertainty and cross-asset volatility
Investor sentiment was further unsettled by President Donald Trump’s decision to lift global tariffs to 15%, invoking Section 122 of the Trade Act. European officials signalled concern, pausing ratification of a US-EU trade agreement. Companies sensitive to global supply chains, including Nike and Wayfair, fell after strong gains in the prior session.
Gold prices rose more than 2% as investors sought defensive assets, while bitcoin slipped below US$65,000. US 10-year Treasury yields fell 5 basis points to 4.03%, reflecting a shift toward safer assets.
Australian market outlook
Australian shares are set to open modestly higher, with ASX 200 futures up 27 points, or 0.3%, to 9,004.
Local attention turns to a busy reporting calendar on Tuesday, featuring Woodside Energy, NextDC, Viva Energy, Scentre Group and ARB Corporation among others.
