S&P 500 closes lower Monday as market's comeback attempt fizzles

The S&P 500 slid Monday as the market failed to bounce back from Friday’s steep sell-off.

The broad market index lost 0.5%, closing at 5,983.25. The Nasdaq Composite  fell 1.21%, ending the session at 19,286.92. The Dow Jones Industrial Average eked out a narrow gain of 33.19 points, or 0.08%, to close at 43,461.21.

Shares of major tech companies came under pressure, leading the Nasdaq lower on the day and into negative territory for 2025.

 Palantir

 tumbled 10.5%, dragging on the tech-heavy index. Microso

 shed about 1% after an analyst report from TD Cowen said the company is cutting spending on data centers, raising fears of weakness in the artificial intelligence trade. Chipmaking giant Nvidia pulled back 3%.

Concerns of President Donald Trump’s trade war against major U.S. trading partners continued to weigh upon sentiment. Trump said tariffs on Canada and Mexico “will go forward” after the monthlong postponement deadline ends next week.

“The White House had investor support for the first four weeks of the term, but the honeymoon may be coming to an end,” said Scott Helfstein, head of investment strategy at Global X.

The moves follow the stock market’s fall last week. The Dow and Nasdaq finished the week more than 2% lower, while the S&P 500 shed more than 1%. On Friday alone, the Dow pulled back more than 700 points, while the S&P 500 and Nasdaq dropped 1.7% and 2.2%, respectively.