Stocks Drop as Trade Dispute Overwhelms Tamed Price Data
A selloff in U.S. stocks continued Wednesday, as investors grew increasingly concerned about the impact of the Trump administration’s widening trade conflicts.
The S&P 500 Index fell 0.3% as of 11:15 a.m. in New York, after earlier rising as much as 1.3%. The intraday change of more than 1% was the 14th straight session in which the equity benchmark swung at least that much — the longest streak since 2022. The Cboe Volatility Index was at 26.5, more than six points above its long-term average.
The declines continued a three-week selloff that has wiped nearly 10% off the S&P 500 as President Donald Trump presses ahead with his trade dispute with America’s biggest trading partner. Stocks appeared poised for a reprieve from the selloff after Trump and Canada eased their feud Tuesday night and progress in securing a cease-fire in Russia’s war in Ukraine appeared imminent. Futures jumped to session highs after data Wednesday morning eased concerns about a resurgence in inflation.
The recovery faded as Trump’s 25% tariffs on metals imports prompted immediate retaliation from the European Union and Canada.
“Investors are more concerned about the uncertain outlook for inflation and growth as tariffs go into effect,” wrote Kevin Brocks, director of 22V Research.
The Nasdaq 100 rose 0.3%, paring a gain of as much as 2%, as big-cap technology names struggled to halt a rout that has wiped trillions off their value in just three weeks.
Source: Bloomberg
