Actions increased more loss Wall Street Tuesday as a War of trade Between the United States and its main commercial partners increased, erasing all the earnings since the day of the S&P 500 election.
The Trump administration imposed rates on the imports of Canada and Mexico from Tuesday and doubled the rates against China’s imports. The three countries announced retaliation actions, causing concerns about a slowdown in the global economy.
The S&P 500 fell by 1.2%, with more than 80% of the reference index stocks it closed. Dow Jones’s industrial average slipped by 1.6%.
The Nasdaq compound slipped by 0.4%. The heavy technology index briefly reached a 10% decrease compared to the latest closure, which the market considers a correction, but the gains for Nvidia, Microsoft and other heavy pesos of technology helped to make these losses.
Financial stocks were among the heaviest weights of the S&P 500 Index. JPMORGAN CHASA fell by 4% and Bank of America lost 6.3%.
The markets in Europe fell abruptly, and the Dax of Germany fell by 3.5%, as car makers saw heavy losses. Stocks in Asia experienced a more modest decrease.
« The markets are having a difficult time, even by establishing expectations on how this trade war might seem, » said Ross Mayfield, Baird’s investment strategy analyst. « This is clearly a higher level step than we saw during the first term (Trump). »
The market could soon face more turns in the tariff drama. President Donald Trump addresses a joint session of Congress on Tuesday night. After the closing bell, Secretary of Commerce, Howard Lutnick, told Fox Business News that the United States would meet with Canada and Mexico « in the middle » with rates, with an advertisement as soon as Wednesday.
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The recent decrease in North -American stocks has erased all markets from the Trump election in November. This manifestation was largely built in the hope of policies that strengthen the economy and companies in the United States. Concerns about rates that increase consumer prices and reigning inflation have heavy in both the economy and Wall Street.
The rates call for retailers’ warnings, including Target and Best Buy, as they report their latest financial results. Target fell by 3% despite exceeding Wall Street results, saying that there will be a « significant pressure » about its benefits to start the year due to rates and other costs.
Best Buy caused 13.3% due to the largest fall among S&P 500 shares after giving investors a weaker forecast than expected and notice on fares.
« International trade is important for our company and industry, » said Corie Barry, director general of Best Buy.
Barry said that China and Mexico are the two main sources of products that Best Buy sells, and also hopes that the sellers will go through fare costs, which would increase prices for North -Americans.
The imports of Canada and Mexico are now imposed to 25%, and Canadian energy products are subject to 10% of import rights. The 10% rate Trump put to Chinese imports in February doubled up to 20%.
The retaliation was fast.
China responded to the new North -Americans advertising that it will impose additional rates of up to 15% on the imports of U.S. key farm products, such as chicken, pig, soy and beef, and expanded controls to do business with key companies in the United States. Canada plans to give the rates to more than $ 100 billion from North -Americans over 21 days. Mexico also plans rates about United States imported goods
The S&P 500 companies are wrapping the last round of quarterly financial reports. They have published a wide growth of 18% earnings for the fourth quarter. But Wall Street has already reduced expectations in the current quarter to 7% of growth, from a little more than 11% forecasts at the beginning of the year.
« Success to growth is more than the commentary that we will look for companies, » said Kevin Gordon, a senior investment strategist by Charles Schwab.
Beaching worries follow a series of economic reports with worrying signals that include North -Americans who become more pessimistic about inflation and go back to spending. Consumer spending has essentially promoted the economic growth of the United States in the face of high interest rates.
Wall Street hopes that the Federal Reserve will continue to reduce interest rates by 2025. The Central Bank has stated more precaution, in part due to the uncertainty surrounding the economic impact of the rates. The Fed is expected to keep the stable rates at its next meeting later than March.
The Fed raised interest rates to its highest level in two decades to dominate inflation. He began to cut off his reference rate by 2024, as the inflation rate approached his 2%goal. But inflation is stubbornly just above the target, and the rates threaten increases in the price that could feed inflation.
The Treasure Yet’s returns were mixed in the Bonca Market. The tenor’s performance of ten years increased to 4.20% from 4.16% from Monday afternoon. It was still reduced abruptly from last month, when it came to 4.80%, as worries have grown over the force of the United States economy.
« Because the rates are in force and there is no guarantee that they are likely to be temporary, this will leak their way to the good market and we see the threat of highest inflation that erodes the value of the ten -year note, » said Sam Stovall, a CFRA investment strategist.
The 2 -year treasure performance remained constant at 3.94%.
All said, the S&P 500 fell 71.57 points to 5,778.15. The Dow dropped 670 points to 42,520.99, and Nasdaq surpassed 65.03 points at 18,285.16.
AP Matt Ott and Elaine Kurtenbach business writers contributed.
& Copy 2025 The Canadian Press
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