S&P 500 and Nasdaq Subdued as Trump’s Visa Crackdown Weighs on Markets
The S&P 500 and the Nasdaq traded flat on Monday after reaching record highs in the previous session, as investor sentiment was dampened by uncertainty over President Donald Trump’s visa policies.
On Friday, the Trump administration proposed a $100,000 annual fee for H-1B visas, prompting concerns among tech companies and banks. Several firms advised employees to remain in the U.S. or return quickly to avoid complications.
Microsoft and Amazon shares slipped, reflecting their reliance on skilled international workers, particularly from India and China. Microsoft also dragged down the Dow Jones Industrial Average. Other major H-1B sponsors, including Cognizant Technology Solutions, Intel, and JPMorgan, pared back earlier declines.
Market analysts noted that stricter visa requirements could create a more challenging environment for companies, weighing on broader sentiment.
Meanwhile, Apple gained 2.4% after Wedbush raised its price target on strong iPhone 17 demand. Both Apple and Tesla hit new eight-month highs, boosting the S&P 500 technology and consumer discretionary sectors and helping the Nasdaq to another record.
At 10:08 a.m. ET, the Dow Jones Industrial Average was down 95.73 points (0.21%) to 46,219.54. The S&P 500 slipped 1.46 points (0.02%) to 6,662.90, while the Nasdaq Composite gained 25.27 points (0.11%) to 22,656.75.
Investors also reacted to the Federal Reserve’s signal of further interest rate cuts, following its first cut of 2025 last week. This has helped Wall Street extend its rally, with the S&P 500 and Nasdaq marking a third consecutive week of gains. Historically, September has been a weak month for U.S. equities, but all three indexes remain positive so far.
Additional economic reports are due this week, including personal consumption expenditures (PCE), the Fed’s preferred inflation measure, and gross domestic product (GDP). Newly appointed Fed Governor Stephen Miran is also expected to deliver remarks later today.
On the corporate front, Kenvue dropped 5.9% after reports linked Tylenol use in pregnancy to autism, ahead of a Trump administration update. Pfizer climbed 3.1% after announcing a $7.3 billion deal to acquire weight-loss drug developer Metsera, whose stock surged 62%. Compass tumbled 8.2% after agreeing to acquire Anywhere Real Estate in a $4.2 billion all-stock deal, while Anywhere’s shares jumped 58%.
Elsewhere, Fox Corp gained 2.6% following reports that its top executive is exploring a stake in TikTok.
On market breadth, decliners outpaced advancers by a 1.45-to-1 ratio on the NYSE and 1.07-to-1 on the Nasdaq. The S&P 500 recorded nine new 52-week highs and 13 new lows, while the Nasdaq logged 84 new highs and 33 new lows.
