Dow sinks more than 700 points as tariff uncertainty roils markets

On February 23, 2026, the stock market experienced a significant downturn, with the Dow Jones Industrial Average closing down by 823 points, or 1.66%. This marked the worst day for the index in a month, as investors reacted to newly proposed tariffs by President Donald Trump and ongoing concerns surrounding artificial intelligence (AI) disruptions.

Market Overview

The broader S&P 500 index fell by 1.04%, while the tech-heavy Nasdaq Composite dropped by 1.13%. The market’s decline was fueled by uncertainty regarding tariffs and fears related to the impact of AI on various sectors of the economy.

Tariff Uncertainty

The turmoil began when the Supreme Court struck down tariffs that President Trump had previously imposed using emergency powers. In response, Trump announced he would raise tariffs on imports to 15% using a different legal authority. This announcement has created confusion and anxiety among investors regarding potential refunds and the overall economic outlook.

Michael Landsberg, Chief Investment Officer at Landsberg Bennett Private Wealth Management, noted that the ongoing tariff discussions are likely to be a significant distraction for the markets throughout the year, albeit with less volatility than experienced during the initial shock in April 2025.

Impact on Technology Stocks

In addition to tariff concerns, the stock market is grappling with a downturn in technology and AI stocks. The Nasdaq has seen a decline of approximately 5.8% since reaching a record high in late October 2025. A report released by Citrini Research outlined hypothetical scenarios detailing how advancements in AI could disrupt various sectors, leading to a sell-off in stocks associated with these technologies.

Notable Stock Movements

• American Express (AXP) shares fell by 7.2%, marking its worst day since April 2025.
• DoorDash (DASH) and private equity firm KKR (KKR) saw declines of 6.6% and 8.89%, respectively.
• IBM (IBM) shares plummeted by 13.15%, the steepest drop since 2000, following a blog post from Anthropic discussing how its AI tool could modernize the COBOL programming language.

Market Sentiment and Volatility

More than 60% of stocks in the S&P 500 closed lower on the day of the downturn. Despite a slight gain on the preceding Friday, market sentiment weakened over the weekend as Trump announced the tariff increase from 10% to 15%. The VIX, Wall Street’s fear gauge, surged by 12% and surpassed the 20-point mark, indicating elevated market volatility.

Gold, traditionally viewed as a safe haven during periods of uncertainty, rose by 3.4%, climbing above $5,200 per troy ounce. The sentiment driving the markets has been characterized as “fear,” as indicated by CNN’s Fear and Greed Index. Concerns about private credit and ongoing tensions between the US and Iran have also contributed to market jitters.

Cryptocurrency and Other Markets

In the cryptocurrency market, Bitcoin experienced a decline of more than 4%, hovering around $64,600. The cryptocurrency has struggled this year, down nearly 50% from its record high of over $126,000 in early October 2025. The US dollar also weakened slightly against other major currencies, while Treasury yields fell as investors sought refuge in bonds.

Conclusion

The current market environment is characterized by significant uncertainty, primarily driven by tariff announcements and the unpredictable nature of technological advancements in AI. Investors are advised to remain vigilant as these factors continue to shape market dynamics.

Frequently Asked Questions

Note: The information provided in this article is for informational purposes only and should not be considered financial advice.