A new batch of tariffs from President Donald Trump on Tuesday again sent some investors scrambling, as the blue chip Dow Jones Industrial Average stock index tumbled further as the market shudders at economic policy uncertainty.
Traders work on the floor of the New York Stock Exchange on Tuesday.
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Key Facts
The Dow, which tracks 30 American stalwarts from Apple to Walmart, fell 450 points, or 1.1%, by 12 p.m. EDT.
The index fell Tuesday to its lowest intraday price since Sept. 13.
Amgen, Apple, McDonald’s and Visa were the biggest daily losers on the Dow, which is weighted by share price.
The drop followed Trump’s social media announcement that he will increase tariffs on Canadian steel and aluminum imports from 25% to 50%.
The more broadly spanning S&P 500 and Nasdaq indexes were dinged less by the tariff news, as the S&P slipped 0.7% and the Nasdaq inched down 0.2%.
Car Stocks Hit The Hardest
Shares of Ford, General Motors and Jeep parent Stellantis declined at least 3% apiece, as the American auto industry heavily relies on Canadian metal in its supply chain. Trump wrote Tuesday he hopes to “permanently shut down the automobile manufacturing business in Canada.”
Surprsing Fact
The world’s most valuable automaker, Tesla, was immune from Tuesday’s slide, as shares of the electric vehicle firm climbed 3%, bouncing slightly from its staggering recent losses. Also rising Tuesday were shares of artificial intelligence giant Nvidia, which declined 23% in the three-week stretch ending Monday.
Key Background
Nvidia’s and Tesla’s bounce came after the pair headlined Monday’s brutal selloff as the Nasdaq suffered its worst day since 2022, declining 4%. All three major indexes are down significantly since Trump took office in January, and are in the red since he won a second term in November, erasing what were once robust gains. Trump has said to pay little attention to the stock market, while strategists have largely expressed concern at the lack of policy clarity. Trump’s tariffs will worsen inflation and slow economic output, according to Goldman Sachs economists, who raised their probability of a recession in the next year from 15% to 20% last Friday.
Further Reading
ForbesStock Market Comeback Erased: S&P 500 Sinks To 6-Month Low As Trump Says Don’t ‘Watch The Stock Market’By Derek Saul ForbesAre We Suddenly Close To A Recession? Here’s What The Data Actually Shows.By Derek Saul
