Key Takeaways

Major U.S. equities indexes were mixed on the first day of the new trading week, with stocks wavering after President Donald Trump threatened to impose an additional 50% levy on China if the Asian nation fails to rescind its 34% retaliatory tariff on U.S. goods.

Following dramatic swings driven by shifting developments in the trade conflict, the S&P 500 ended the session 0.2% lower. The Dow dropped 0.9%, while the Nasdaq eked out a daily gain of 0.1%.

Tractor Supply Co. ( TSCO ) shares sank 5.8%, losing the most of any stock in the S&P 500. The retailer of rural lifestyle products has pointed to its past success in adapting to tariffs during Trump's first presidential term, which its CEO said involved a roughly even split of the burden between the company itself, supplying manufacturers, and price increases for customers. While the company imports a relatively limited amount of the products it sells, a significant amount of those imports come from China. At the same time, tariffs on materials like steel and aluminum could also add to price pressure.

Shares of tool manufacturer Stanley Black & Decker ( SWK ) dropped 5.7%. Monday's decline extended losses posted last week following Trump's tariff announcement. With a significant production footprint in Asia, Stanley could see a major impact from the intensifying trade conflict. During its latest earnings call, the company's chief financial officer (CFO) estimated a potential net tariff impact of $10 million to $20 million in 2025, but he indicated that the company would implement countermeasures, including supply chain adjustments and pricing measures.

Homebuilder stocks lost ground, reversing some of the strong gains posted late last week as the broader markets tumbled. In addition to signs of a possible reprieve in interest rates, the exemption of lumber imports from Canada contributed to enthusiasm around the homebuilding sector on Friday. However, the National Association of Home Builders (NAHB) indicated that tariffs on other key materials could still contribute to price increases for homes around the country. Shares of D.R. Horton ( DHI ), PulteGroup ( PHM ), and NVR ( NVR ) all declined roughly 5% on Monday.