Concerns are growing that President Trump's tariff policies are beginning to weigh on US financial markets. A growing number of companies are expressing concerns that the full-scale implementation of Trump's tariffs will inevitably lead to supply chain disruptions and a decline in consumer spending due to inflation. This has led to a retreat from the optimism that initially shook the market.

The Dow Jones Industrial Average fell 1,118 points (2.5%) in the week leading up to February 21st, the biggest drop in about four months since October of last year. The tech-heavy Nasdaq Composite Index also fell sharply, down 2.5%.

The plunge was triggered by Walmart, the world's largest retailer. Walmart's earnings forecast, released on February 20th, fell short of investors' expectations, raising concerns about the future of consumer spending. In an interview with Reuters, a Walmart executive expressed concern that "if tariffs are imposed on Canada and Mexico, we will not be able to avoid the impact," further fueling market jitters.

Walmart's earnings outlook is seen as an indicator of the economic outlook, as personal consumption accounts for 70% of US gross domestic product (GDP). Nomura Securities said, "While optimistic views on the impact of tariffs were the dominant view, a cautious view has emerged."

There are also concerns that tariffs could put a damper on the artificial intelligence (AI) boom that has been driving the New York stock market. On February 21st, President Trump said he would consider countermeasures, including tariffs, against European countries that are imposing digital taxes on US IT giants such as Google and Meta. As a result, all AI-related stocks were sold off on the same day.

Bloomberg reported that "with global supply chains expanding amid escalating tensions between the US and Europe, Trump's tariffs could put pressure on the earnings of IT giants."

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