NEW YORK (AP) — U.S. stock markets sunk further Tuesday after President Donald Trump raised interests in the trade war, bringing Wall Street to more than 9% below the record set just a month ago.
The S&P 500 fell 0.9% in the noon trade after Trump said it would raise tariffs on steel and aluminum coming from Canada and double the planned increase to 50%. The president said he is responding directly to the moves Canada has made after Trump began threatening tariffs on one of the country’s most important business partners.
Dow Jones’ industrial average fell 554 points (1.3%) as of 11am Eastern Time, with Nasdaq’s composites 0.5% lower.
The drop extends the Wall Street sale, which brought investors into scary rides, fueled by worry about how painful the economy will cause through other policies aimed at reshaping the country and the world. The S&P 500 has rocked up and down at least 1% in the past eight days.
“The only thing that makes sense is that Canada will become our precious 50 first states,” Trump said. “This will create all the tariffs and eliminate all else entirely.”
Tuesday’s fall also followed warning signals flashing about the economy as Trump rolled out tariffs, creating disruption and pessimism in U.S. households and businesses. The fear is that whip saw movements will either directly hurt the economy or create enough uncertainty to lead American businesses and consumers to paralysis without the economy.
Delta said late Monday that a change in confidence was already seen, affecting the demand for flights’ close bookings. This roughly cuts our revenue growth forecast for the first three months of 2025 by halving, ranging from 7% to 9% to 3% to 4%.
Delta’s shares lost 8.5%.
Southwest Airlines specifically pointed out the lack of government travel, including other reasons such as wildfires in California and the “demand trends due to soft bookings and weakening macro environments.”
Despite this, the shares rose 5.6%, but after the airline said it would start charging some passengers to check bags soon and announce the changes to promote their most loyal customers.
Oracle fell 56% after the tech giant reported profits and revenue for the latest quarter that did not meet analyst expectations.
It was some big tech stocks that help to keep market losses from getting worse, and have been a bit steady after being voted over the last few months. Elon Musk’s Tesla, for example, rose 1.7%. For example, after Trump said he would buy Tesla at the “Elon’s ‘Baby'” support show,
Tesla sales and brands are under pressure as masks have led efforts to cut federal spending in Washington. Tesla stocks have fallen by more than 44% in the younger years so far.
Other big tech superstars who have led the market to record after recording recent records have also become a bit stiff. Nvidia added 0.2% to reduce its previous year loss to 20.2%. Market sales are struggling as hit stocks are especially hits considered too expensive amid the Wall Street frenzy over artificial intelligence technology.
In overseas stock markets, the index was pretty low across Europe and Asia.
Stocks rose 0.4% in Shanghai, and little has changed in Hong Kong as China’s annual national parliament put together annual sessions with several measures to boost the economy slowing.
In the bond market, Treasury yields have been a bit stable after falling over concerns about the US economy in recent months. The 2010 Treasury yield fell from 4.22% late Monday to 4.21%. In January, it was approaching 4.80%. ___
AP business writers Eurikeyama and Matt Ott contributed.
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