US Markets Extend Losses As Trump’s Trade Policies Rattle Investors – News18
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US equity market weakness continued Tuesday after Monday’s crash due to Trump’s recession hints. Dow fell 1.14%, Nasdaq dipped 0.18%. Tariff threats fueled fears.
US market suffered another downturn following Trump’s tariff threats.
The weakness in the US equity market continued on Tuesday following Monday’s crash triggered by Donald Trump’s latest tariffs threats to Canada. On Tuesday, the Dow Jones Industrial Average fell 1.14 per cent to end at 41,433.48, while Nasdaq, which crashed 4 per cent on Monday, saw a slight dip of 0.18 per cent.
The recent selloff is considered to be the biggest in months, with investors worried due to tariff threats to the global economy.
Trump’s latest tariff threat heightened investor fears that his trade policies, including tariffs on Canada, Mexico, and China, could lead to an economic slowdown or even a recession.
In a new reiteration, Donald Trump said that he would impose tariffs within hours on all imported Canadian steel and aluminium products to 50%. Later, Trump backed off from the plan to double tariffs on steel and aluminium from Canada to 50%. It came after a Canadian official also announced they would not impose a 24% surcharge on electricity.
These concerns were reflected in the stock market, with the S&P 500 experiencing its largest single-day decline since 18 December. This drop erased over $1.3 trillion in market value, bringing the total loss from its recent peak to a massive $4 trillion. Adding to the anxieties, the tech-focused Nasdaq officially entered correction territory with a 10% decline late last week.
Wall Street’s rally took a hit as tech giants experienced a major sell-off. Microsoft, Nvidia, Tesla, Meta, and Alphabet plummeted between 4-11%, erasing billions in market value. These stocks, considered the market’s backbone, faced significant downward pressure.
Donald Trump earlier announced the imposition of 20% tariffs on imports from Canada and Mexico but later paused for one month.
(With Reuters Input)
