Stock Market, Gold Shrug Off Trump Tariffs, but Bitcoin Slides to $90K

Key Takeaways

• The S&P 500 fell 0.5% after fluctuating between gains and losses.
• Consumer sentiment is declining with inflation expected to rise due to tariffs and policies under President Donald Trump.
• Bitcoin dropped below $90,000 as the crypto market faced a broader sell-off.

U.S. markets were mixed on Monday, with the S&P 500 dropping by 0.5% and the Dow gaining 33 points after Donald Trump announced new tariffs on Mexico and Canada. Only the Nasdaq fell by 1.2%.

Inflation concerns, fueled by Trump’s tariffs, may prevent the Fed from cutting interest rates. Bitcoin dropped below $90,000 amid broader crypto market losses, but analysts expect tariffs to hit stocks more than crypto.

Stock and Gold Firm on Trump’s Tariffs

The S&P 500 fell 0.5% after fluctuating between slight gains and losses, following a 1.7% drop on Friday due to disappointing U.S. economic data.

The Dow Jones Industrial Average gained 33 points, or 0.1%, while the Nasdaq composite dropped 1.2%.

Recent reports show that consumer sentiment is declining, with inflation expectations rising due to tariffs and policies from the Trump Administration.

Persistent inflation could prevent the Federal Reserve from lowering interest rates, which could otherwise support the economy and financial markets.

In the bond market, Treasury yields eased ahead of upcoming reports, with the 10-year Treasury yield falling to 4.40%.

Gold prices surged to a record high on Monday, driven by safe-haven demand amid concerns over Trump’s tariff plans.

Spot gold rose 0.4% to $2,947.48 per ounce, hitting $2,956.15 earlier – its eleventh record high in 2025. U.S. gold futures settled 0.3% higher at $2,963.20.

Bitcoin Drops to $90,000

Bitcoin has dropped below $90,000 for the first time in over a month. The digital currency is trading around $89,000 after hitting its lowest point since Nov. 18.

This movement is part of a broader sell-off in the crypto market, which appears unrelated to news about Donald Trump’s tariffs.

According to analysts, the sentiment turned bearish following recent setbacks, including the largest hack in crypto history on the Bybit exchange and the LIBRA scandal involving Argentine President Javier Milei.

The crypto market experienced a sharp downturn on Monday, losing over $110 billion in market cap as Bitcoin and altcoins hit multi-week lows.

The recent turmoil in the crypto market contrasts sharply with the rally that pushed Bitcoin higher after U.S. President Donald Trump’s election.

What To Expect

Analysts agree that U.S. tariffs don’t have a direct and huge impact on cryptocurrencies, and they affect stocks more than other assets.

For the stock market, every five-percentage-point increase in the U.S. tariff rate is estimated to reduce S&P 500 earnings per share by roughly 1-2%, said David Kostin , chief U.S. equity strategist at Goldman Sachs Research.

“As a result, if sustained, the U.S. tariffs would reduce Goldman Sachs Research’s S&P 500 EPS forecasts by roughly 2-3%,” Kostin said.

Tariffs could also potentially drive up the value of the dollar, according to comments from Goldman Sachs Research foreign exchange analysts.

“A stronger dollar could further weigh on the earnings of S&P 500 companies, which derive 28% of revenues outside the U.S., although they report less than 1% of revenues explicitly from each of Mexico and Canada,”  the Goldman Sachs expert added.