U.S. stocks continued to slide on Tuesday as Donald Trump's tariffs on Canada, Mexico and China went into effect and prompted retaliatory measures, raising investor concerns about the economy.
The Dow Jones Industrial Average fell 520 points, or 1.2%. The S&P 500 fell 1.1%. The Nasdaq Composite fell 1%, pushing the tech-heavy index near correction territory, when an index drops 10% from a recent high.
The U.S. imposed 25% tariffs on Canada and Mexico that took effect at midnight. Trump also imposed additional 10% duties on Chinese goods.
China retaliated with additional duties of up to 15% on some U.S. products. Canadian Prime Minister Justin Trudeau said his country would also impose 25% duties on U.S. goods. Mexican President Claudia Sheinbaum said the U.S.'s southern neighbor would respond with tariffs and other tools to be announced later this week.
Shares of GM and Ford fell 3% and 2%, respectively. Chipotle, which gets about half of its avocados from Mexico, slumped more than 2%.
Tuesday's moves followed a selloff on Monday that dragged the S&P 500 into the red for 2025. As investors hoped a last-minute deal could be reached to avoid full taxes on Mexico and Canada, losses accelerated sharply on Monday after Trump confirmed the long-awaited levies would go into effect soon. Paired with weak economic data released recently, the tariffs have given market participants further reason to worry about the health of the U.S. economy.
"While Tuesday's tariffs are in place, it's still very unclear how long these tariffs will be in place," said Clark Geranen, chief market strategist at CalBay Investments.
"We tend to believe that this is more of a negotiating tactic and not the beginning of a long, drawn-out trade war," he said. "However, in this situation, investors are selling first and asking questions later." (Newsmaker23)
Source: CNBC
US stocks advanced on Thursday, supported by upbeat earnings and solid economic data as markets brushed aside lingering concerns over President Trump's criticism of the Fed and renewed tariff threats....
S&P 500 and Nasdaq 100 futures edged up 0.1% and 0.2%, respectively, on Thursday morning (July 17), while the Dow Jones Industrial Average remained flat. What caused this? Investors were digesting...
The STOXX 50 rose 0.9% and the STOXX 600 gained 0.6% on Thursday, marking their first advances in six and five consecutive sessions, respectively, as investor attention shifted to corporate earnings. ...
Asia-Pacific markets mostly fell Thursday, with investors assessing the fall in Japan's exports for the second consecutive month, as well as U.S. President Donald Trump's denial of his intent to fire ...
Stocks in the US closed higher on Wednesday after President Trump denied plans to fire Federal Reserve Chair Jerome Powell, though he stopped short of ruling it out entirely. The S&P 500 climbed ...
EUR/USD tumbles during the North American session, down 0.38% following the release of economic data from the United States (US), which triggered a reaction by investors, who trimmed their bets that the Federal Reserve (Fed) will cut interest...
Oil prices rose $1 on Thursday after drones struck Iraqi Kurdistan oil fields for a fourth day, pointing to continued risk in the volatile region. Brent crude futures settled at $69.52 a barrel, up $1.00, or 1.46%. U.S. West Texas Intermediate...
The United States Commerce Department is set to impose preliminary anti-dumping duties of 93.5% on graphite imported from China after concluding the materials, which are a key component for batteries, had been unfairly subsidized. According to...
U.S. consumer prices increased by the most in five months in June amid higher costs for some goods, suggesting tariffs were starting to have an...
European stocks erased early gains and closed mostly lower on Tuesday as markets continued to assess how potential tariffs from the US may hurt...
Asia-Pacific markets are set to open higher on Tuesday as investors appear to look past U.S. President Donald Trump's on-again-off-again tariffs and...
President Donald Trump's renewed calls for Federal Reserve Chair Jerome Powell's resignation have prompted investors to protect portfolios against...