US stock markets fell heavily again on Monday in a breathtaking roller-coaster ride after more than £80 billion was wiped off the value of London stocks.
The S&P 500 closed lower on Monday after a frenzied session. According to preliminary data, the S&P 500 lost 14.22 points, or 0.28%, to end at 5,059.86 points, while the Nasdaq Composite gained 14.66 points, or 0.09%, to 15,602.44.
The Dow Jones Industrial Average fell 356.67 points, or 0.93%, to 37,958.19.
Earlier on Monday, the markets regained their ground and returned to positive territory amid reports President Trump was considering a 90-day tariff freeze for all countries except China, before plummeting back into the red once again.
The latest gyrations in New York came after more than £80 billion was wiped off the value of Britain’s leading companies as the London stock market dived again on fears about the fall-out from Donald Trump’s “nuclear” tariffs policy, which sent shares plunging around the world.
Within minutes of opening the blue chip FTSE-100 index of biggest London listed firms was down more than 6% before bounding slightly to stand at 7,712.4, down 342.57 points, or 4.25% .
That carves just over £84 billion from the combined value of Britain’s 100 leading quoted stocks.
FTSE 100 Live: Stock market rout deepens, index down 5% and S&P 500 set for bear market
It follows a fall of almost 5% on Friday leaving the Footsie at its lowest level since January 2024.
The huge wave of selling wiped billions of pounds from the value of Britain’s leading companies and will savage the pension funds of millions of savers.
It came after Donald Trump doubled down on his trade barriers policy insisting markets must take their “medicine.”
Susannah Streeter, head of money and markets, at investment platform Hargreave Lansdown said: ‘’The big flight to cash continues as investors seek a shelter for their money amid the tariff storm. Trump has dashed hopes for an easing of policy by calling tariffs ‘medicine’ and investors are absorbing the implications of this bitter pill for the global economy.”
“The tech-stock turmoil looks set to rampage for another day on Wall Street. The bears are already out in force across the Nasdaq, and futures indicate another steep fall for the index. ”
The biggest fallers in London included household names such as British Airways owner IAG which suffered a 9% drop, aero engine maker Rolls-Royce with a 10% decline and high street bank Barclays, down 8.8%.
Russ Mould, investment director at brokers AJ Bell said: “This market sell-off feels brutal because it is relentless. Often, we see one or two bad days then a rebound. We’re now on day three and the sell-off is intensifying, not dying down.
