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?

U.S. stocks are remaining relatively calm Monday, and indexes are drifting in mixed trading ahead of President Donald Trump’s latest deadline on tariffs. The S&P 500 was 0.1% lower in afternoon trading.

Tim Miller and Jonathan V. Last talk the stock market tanking in real time as Donald Trump announces tariffs on Mexico and Canada, with both Nasdaq and Dow Jones tumbling significantly by end of day.