The S&P 500 and the Dow closed lower on Monday after a roller coaster session, with investors worried about an economic slowdown and rising inflation as U.S. President Donald Trump dug in his heels on tariffs, warning he could further increase levies on China.

Market Snapshot

The Dow Jones Industrial Average fell 349.26 points, or 0.91%, to 37,965.60, the S&P 500 lost 11.83 points, or 0.23%, to 5,062.25 and the Nasdaq Composite gained 15.48 points, or 0.10%, to 15,603.26. Palantir Technologies Inc. rose 5%; IONQ Inc. rose 10%; Rigetti Computing rose 11%.

Market Movers

Apple fell 3.7% to $181.46 after the iPhone maker declined 7.3% on Friday. Wedbush analyst Dan Ives cut his price target on the stock to $250 from $325. Apple's market cap sank $443.5 billion last week, the largest weekly market cap decline on record, according to Dow Jones Market Data. The stock dropped 13.6% last week, its worst week since the week ended March 30, 2020, when it plummeted nearly 18%. A large majority of Apple's products are assembled in China, which retaliated Friday to Trump's tariffs by launching a 34% levy on all imported goods from the U.S., effective Thursday.

Bank stocks wavered as global recession fears mounted. A number of major U.S. banks are scheduled to kick off earnings season Friday. Their stocks plunged last Thursday and Friday with the group having its worst two-day decline since March 2020. "Tariffs have inflamed fears of a potential recession that would likely lead to reduced loan demand and more delinquencies," said Gene Goldman, chief investment officer of wealth manager Cetera Financial Group, last week. JPMorgan Chase was up 2% on Monday while Morgan Stanley and Wells Fargo gained 1.1% and 2%, respectively, after falling earlier in the session.

Tesla Motors declined 2.6% to $233.29 after dropping 10% on Friday. The stock's closing high was $479.86 last December. Tesla dropped 9.2% last week, marking the stock's tenth down week in the past 11. Wedbush' analyst Dan Ives, a longtime Tesla bull, reduced his price target on the stock to $315 a share from $55o, with Ives writing in a research note that a brand crisis created by CEO Elon Musk, combined with the Trump tariffs, equaled a "perfect storm for Tesla." Ives still rates the shares a Buy.

General Motors was down 1.5% at $43.53. Bernstein analyst Daniel Roeska cut his rating on the auto maker to Sell from Hold and reduced his price target to $35 from $50. "What were we waiting for? For the past six months, we've been cautious as U.S. policy uncertainties started to mount," wrote Roeska. "Now, with greater clarity, the outlook for GM is clearly unfavorable." Ford Motor declined 3.6%.

Shares of artificial-intelligence chip maker NVIDIA were up 3.5%. Nvidia fell 7.4% on Friday and 14% for the week, marking the stock's worst week since late January, when it tumbled almost 16%. Shares have fallen about 27% this year. Micron Technology up 6%; Broadcom, Lam Research rose 5%.

SUPER MICRO COMPUTER INC, the maker of AI servers, rose 11%, snapping a two-day losing streak. Super Micro was the best-performing stock in the S&P 500 on Monday, rising as much as 15% during the session.

U.S. Steel rose 16% to $44.50 after Trump announced his administration would conduct a new review of U.S. Steel's combination with Nippon Steel. The deal values the American steel maker at $55 a share.

U.S.-listed shares of Chinese companies such as Alibaba, PDD Holdings Inc and JD.com tumbled Monday as stocks in Shanghai fell 7.3% after China said it would hit all U.S. goods with an additional 34% tariff. Alibaba was down 9%, PDD fell 4%, and JD.com dropped 5%.

Strategy, the largest corporate holder of Bitcoin, was down 8.7% as the world's largest cryptocurrency briefly tumbled to below $78,000. Fellow crypto-linked company Coinbase fell 2%.

Eli Lilly fell 2% while U.S.-listed shares of Novo-Nordisk A/S were up 1.7% after the Trump administration said Friday that Medicare and Medicaid won't be expanding coverage for anti-obesity medications. A proposal issued late last year by the Biden administration would have allowed Medicare and Medicaid to pay for drugs such as Lilly's Zepbound and Novo Nordisk's Wegovy, according to The Wall Street Journal. Health and wellness platform Hims & Hers rose 6.9%.

Market News

Nvidia Closes Deal to Acquire Startup Lepton AI: Report

NVIDIA has closed its acquisition to buy artificial intelligence startup Lepton AI, The Information reported.

The deal to acquire Lepton AI, which resells Nvidia's Nvidia's graphics processing units in a cloud service, was worth “hundreds of millions of dollars,” the news outlet added. Lepton AI's co-founders, Yangqing Jia and Junjie Bai, will stay on at Nvidia now that the deal has closed, the news outlet added, citing people familiar with the matter.

Apple to Source More iPhones from India to Bypass Tariffs: Report

Apple plans to send more iPhones to the U.S. from India as it attempts to circumvent the high cost of China tariffs, the Wall Street Journal reported on Monday, citing people familiar with the matter.

According to the report, the adjustments are a short-term stopgap while Apple attempts to win an exemption from President Trump’s tariffs, which CEO Tim Cook was able to obtain during the first Trump administration.

However, Apple sees the current situation as too uncertain to upend long-term investments in its supply chain.

Trump has imposed tariffs of at least 54% on Chinese goods, while the rate on Indian goods is just 26%. China has retaliated with a 34% tariff on certain U.S. goods.