US Stocks Drop Further on Policy Uncertainty
US stocks fell on a volatile Tuesday, extending the volatile momentum from yesterday’s selloff after President Trump announced further tariffs on Canada, extending the market’s easing of risk assets due to the White House’s unpredictable economic policies. The S&P 500 and Nasdaq 100 traded up and down to remain relatively close to six-month lows from yesterday, while the more defensive Dow fell more than 400 points.
The US President announced 50% tariffs on Canadian steel and aluminum that will start tomorrow before declaring a national power emergency to pave the way for further retaliatory action against Canada. This came after the President acknowledged the possibility of a recession in an interview. Airlines plunged, with Delta dropping 5% after cutting its earnings outlook due to lower discretionary spending. Additionally, Oracle fell 3% after posting earnings after yesterday’s closing bell. On the other hand, tech giants rallied to pare their selloffs from yesterday.
Source: Trading Economics