Stocks fell on Wall Street Monday, ahead of President Donald Trump’s latest deadline on tariffs. The S&P 500 was 1% lower in afternoon trading. The Dow Jones Industrial Average was down 402 points, or 0.

A private survey showed American factory activity last month edged closer to stagnation—slowing growth combined with faster inflation—as new orders and employment contracted. A gauge of prices paid for materials jumped to the highest since June 2022. So how should investors react to all this smoke on the horizon?

Stocks slumped and bond yields slid on Tuesday in Asia as investors braced for an imminent escalation in a global trade war with new U.S. tariffs on Canada, Mexico and China set to go into effect within hours.