Stocks Fall as Trump Doubles Tariffs, But Tesla and Tech Stocks Rally/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Wall Street fell Tuesday as Trump doubled tariffs on Canadian steel and aluminum to 50%, escalating trade tensions and sending the S&P 500 down 0.6% and the Dow Jones dropping 443 points (-1.1%). Big Tech stocks helped limit losses, with Tesla rising 3.4% after Trump publicly backed the company and Nvidia gaining 2.2%. Delta Air Lines tumbled 7.1% after cutting its revenue forecast, while Southwest Airlines surged 7.5% on new baggage fees. Treasury yields held steady at 4.26%, and a new jobs report showed 7.7 million openings, indicating a still-strong labor market despite rising economic uncertainty.
Stock Market Volatility: Quick Looks
- S&P 500 drops 0.6% Tuesday as Trump doubles tariffs on Canadian steel and aluminum to 50%.
- Dow Jones Industrial Average falls 443 points (-1.1%), extending the market’s downturn.
- Tesla surges 3.4% after Trump says he will buy a Tesla to support Elon Musk.
- Tech stocks help limit losses, with Nvidia rising 2.2% despite recent struggles.
- Airline stocks mixed: Delta drops 7.1% on weak revenue forecasts, while Southwest jumps 7.5% after announcing new fees.
- Bond market steadies as the 10-year Treasury yield rises to 4.26%.
- China’s stock markets show resilience, with Shanghai up 0.4% as Beijing introduces economic measures.
Deep Look: Wall Street Slumps as Trump’s Trade War Intensifies
Markets Slide as Trump’s Tariffs Shake Investor Confidence
Wall Street continued its volatile downturn Tuesday as Trump’s decision to double tariffs on Canadian steel and aluminum to 50% rattled investors, sending the S&P 500 down 0.6% and the Dow Jones Industrial Average dropping 443 points (-1.1%).
“The only thing that makes sense is for Canada to become our cherished Fifty First State,” Trump posted, adding that doing so would eliminate trade disputes.
The market’s reaction was swift and sharp, with stocks swinging wildly as investors processed the latest escalation in Trump’s trade war.
Big Tech Stocks Provide Some Stability
Despite the overall market decline, Tesla jumped 3.4% after Trump publicly endorsed the company, stating he would buy a Tesla in support of “Elon’s baby.”
- Tesla’s stock has been under pressure amid Musk’s push for deep government spending cuts, but Trump’s backing helped boost investor sentiment.
- Nvidia rose 2.2%, trimming its year-to-date losses to under 19%, as AI-driven stocks showed signs of stabilizing.
Airline Stocks See Mixed Reactions
The airline industry faced turbulence, with Delta Air Lines plunging 7.1% after warning that:
- Demand for close-in bookings has weakened, impacting revenue projections.
- The airline slashed its Q1 revenue growth outlook from 7-9% to 3-4%.
Meanwhile, Southwest Airlines surged 7.5%, thanks to:
- New baggage fees set to boost revenue.
- Customer loyalty program changes aimed at increasing retention.
Bond Market and Job Data Show Signs of Stability
Treasury yields held steady, with the 10-year yield rising to 4.26%, easing concerns about an economic slowdown.
A new jobs report showed that:
- U.S. employers had 7.7 million job openings at the end of January, aligning with economic forecasts.
- Despite market uncertainty, the labor market remains resilient for now.
China’s Markets Buck the Global Trend
- Shanghai’s stock market gained 0.4%, supported by new government policies aimed at revitalizing the economy.
- Hong Kong’s markets remained stable, avoiding the sharp drops seen in U.S. and European markets.
What’s Next?
With Trump’s tariff war escalating and market volatility increasing, investors are bracing for further swings.
- If trade tensions worsen, markets could see further declines.
- If economic data remains strong, some stability could return.
- Investors will be watching Trump’s next moves, as uncertainty continues to dominate Wall Street.
You must Register or Login to post a comment.