US Stocks Whipsawed by Trade Tensions and Nvidia Earnings

The US stock market delivered a mixed performance on Monday as investors prepared for several high-stakes events, including escalating tensions with Canada over tariffs and a looming deadline for Nvidia's quarterly earnings report.

Despite a 0.3% gain in the Dow Jones Industrial Average, the S&P 500 slipped by 0.3%, while the Nasdaq Composite tumbled by 0.8%. The losses were driven primarily by semiconductor stocks, which bore the brunt of investors' concerns ahead of Nvidia's earnings release.

Canada has retaliated against new US tariffs on $20 billion worth of Canadian goods, including wine and hockey sticks. Prime Minister Mark Carney suspended trade talks with the US and pledged 'dollar for dollar' retaliation, with measures set to take effect on September 8. President Donald Trump responded by announcing a 50% duty on Canadian car imports from January 1, 2027.

The escalating tensions have put pressure on shares of General Motors and Ford. The conflict also has implications for the US economy, with last year's $48.3 billion goods trade deficit with Canada cited as a factor in the dispute.