New York, Feb 23, 2026, 12:19 EST — Regular session
- Dow drops, with investors digesting the fresh 15% U.S. import tariff and what ripple effects might come of it
- American Express and Salesforce are weighing heaviest on the price-weighted index.
- Next up: Nvidia reports earnings Wednesday, while U.S. consumer confidence numbers land Tuesday.
The Dow Jones Industrial Average (.DJI) slid 771.73 points, down 1.56%, sitting at 48,854.24 as of 12:19 p.m. EST on Monday, with U.S. tariff worries resurfacing. The S&P 500 (.SPX) was also in the red, off 74.83 points, or 1.08%, at 6,834.68, while the Nasdaq Composite (.IXIC) saw a drop of 274.30 points, or 1.20%, to 22,611.77.
Markets slid after President Donald Trump over the weekend imposed a 15% blanket tariff on U.S. imports, invoking Section 122 of the Trade Act of 1974. This follows a Supreme Court decision that voided his earlier emergency tariffs. According to the Yale Budget Lab, the average effective tariff rate now sits at 13.7%, with the duties slated to lapse after 150 days. Even so, investors remain in the dark on the specifics—timing and possible exemptions have yet to be nailed down. “Uncertainty remains high,” said Mark Hackett, chief market strategist at Nationwide. Reuters
Why does it matter? Tariffs aren’t just a headline for the trade pages—they drive up prices and bite into margins. Companies end up stuck with a choice: eat the extra costs, or pass them along to customers.
The relief bounce from Friday fizzled out. “You simply can’t bet against Trump,” said Thomas Hayes, chairman at Great Hill Capital, who called the rebound “premature” as markets tried to figure out the next policy shift. Attention is turning to Nvidia’s numbers coming Wednesday, plus earnings from Salesforce and Intuit among other software names this week. Traders, eyeing the CME FedWatch tool, still see June as the most likely timing for a rate cut, based on interest-rate futures. Reuters
American Express tumbled $26.61, or 7.7%, while Salesforce dropped $9.39, down 5.1%, in early trading—together, those losses shaved about 222 points off the Dow, according to MarketWatch. Because the Dow is price-weighted, stocks with bigger share prices pack a heavier punch: for every $1 move in any Dow member, the index shifts about 6.16 points.
Tariffs that finish below last year’s highs aren’t necessarily a bad story for everyone. Jefferies analysts singled out Best Buy, Ralph Lauren, and Nike—the Dow name—as companies poised to benefit if duties drop. Morgan Stanley’s team pointed to certain toy and sports-equipment lines, noting the new tariff comes in 4 percentage points under previous rates.
The Dow closed up 230.81 points, or 0.47%, to finish at 49,625.97 on Friday, after the Supreme Court tossed out most of Trump’s tariffs. Investors tried to make sense of softer GDP alongside stickier inflation. “Striking down of these tariffs will benefit corporate bottom lines,” said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder, speaking to Reuters. But Monday’s decline shows how fleeting that boost can be. Reuters
Federal Reserve Governor Christopher Waller signaled that if February’s jobs numbers come in strong, he’d lean toward supporting “a pause” at the Fed’s March gathering. January saw job gains of 130,000—Waller called that “a surprise to the upside.” The February report drops March 6, just ahead of the March 17-18 policy meeting. Reuters
Tariff specifics remain unsettled. Should exemptions fall short and the 15% levy linger past what investors are betting on, traders warn of dampened demand, pricier inputs, and a Federal Reserve that may hold back on rate cuts.
This week’s lineup includes several data releases with the potential to shake up rates and valuations. Look for U.S. factory orders and the Dallas Fed manufacturing index to hit on Monday. Tuesday brings Conference Board consumer confidence figures alongside the Case-Shiller home price index, while producer prices round out the week on Friday.
The Dow’s immediate focus: Nvidia’s report drops Wednesday, plus investors are watching for tariff impacts creeping into corporate guidance. Looking ahead, the next big milestone is the U.S. jobs numbers, set for March 6.
