Wall Street Slips as Trump’s Tariff Fears Linger/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. stock indexes dipped Tuesday amid investor anxiety over upcoming tariff announcements by President Trump. European and Asian markets bounced back slightly following sharp declines. Gold prices hit new records, while airline and tech stocks faced renewed pressure.
Wall Street Dips: Quick Looks
- S&P 500 fell 0.4%, Dow down 222 points, Nasdaq slid 0.3% early Tuesday.
- Investor concerns focus on Trump’s “Liberation Day” tariff announcements expected Wednesday.
- Gold surged above $3,175/oz, hitting an all-time high amid market uncertainty.
- Johnson & Johnson dropped 3.4% after its bankruptcy plan was rejected again.
- Airline stocks fell, including Delta (-3.8%) and United Airlines (-2.8%), over demand concerns.
- PVH soared 19.6% on strong earnings and a $500 billion stock buyback plan.
- European markets rebounded, with Germany’s DAX rising 1.2% and France’s CAC 40 up 0.8%.
- Japan’s Nikkei remained flat, as concerns grew over potential U.S. auto tariffs.
- 10-year Treasury yield dipped to 4.17%, down from 4.23%, reflecting economic caution.
Wall Street Slips as Trump’s Tariff Fears Linger
Deep Look
Wall Street opened on a cautious note Tuesday as U.S. stock indexes moved lower amid persistent uncertainty surrounding upcoming trade policy announcements by President Donald Trump. Dubbed “Liberation Day”, the anticipated Wednesday announcement has stoked fears across financial markets, particularly over the scope and impact of potential new tariffs.
As of early trading, the S&P 500 slipped 0.4%, the Dow Jones Industrial Average dropped 222 points, or 0.5%, and the Nasdaq composite declined 0.3%. These losses extend the recent streak of volatility that has characterized investor sentiment, driven largely by ambiguity surrounding Trump’s evolving trade strategy.
At the heart of market anxiety is the possibility that new tariffs could further stoke inflation and hamper global economic growth. Even a less aggressive tariff approach may not calm markets if it’s perceived as inconsistent or unpredictable. Economists warn that a staggered or unclear rollout could lead U.S. businesses and households to cut back on spending, damaging economic momentum.
As investors seek safe havens, gold prices surged past $3,175 per ounce, setting a new record. This marks a dramatic rise from just under $2,700 at the start of 2025, reflecting a shift toward traditionally stable assets amid policy uncertainty.
Among notable stock movements, Johnson & Johnson fell 3.4% after a U.S. bankruptcy court rejected its talc-related settlement plan for a third time. The ongoing legal battle continues to weigh heavily on investor confidence.
Meanwhile, airline stocks came under pressure, reflecting broader concerns that weakening economic confidence and trade tension may dampen demand for air travel. Delta Air Lines lost 3.8%, while United Airlines dropped 2.8%, contributing to declines in the transportation sector.
On a brighter note, fashion conglomerate PVH Corp, the parent company of Calvin Klein and Tommy Hilfiger, surged 19.6% after it posted better-than-expected quarterly earnings. The company also announced an ambitious plan to return $500 billion to shareholders via stock buybacks this year, a move that energized investors and bolstered confidence in consumer brand strength.
Globally, financial markets showed signs of stabilizing. After steep losses the day prior, European markets rebounded. Germany’s DAX rose 1.2%, and France’s CAC 40 climbed 0.8%, buoyed by reassurances from European Commission President Ursula von der Leyen. In a strong statement, she emphasized that Europe would not yield to U.S. trade demands, asserting the bloc’s readiness to employ “firm countermeasures” if necessary.
In Asia, Japan’s Nikkei 225 index remained mostly flat, reflecting both caution and diplomatic maneuvering. Japanese Prime Minister Shigeru Ishiba publicly urged President Trump to avoid imposing auto tariffs, citing the long-standing U.S.-Japan alliance. Meanwhile, a central bank survey revealed declining business sentiment among large manufacturers, further highlighting the risks of escalating trade tensions.
In the bond market, the yield on the 10-year U.S. Treasury fell to 4.17%, down from 4.23% on Monday and significantly lower than its January level of 4.80%. The drop suggests investors are increasingly concerned about a potential economic slowdown, prompting them to seek the relative safety of government bonds.
Altogether, markets are on edge as they await clarity on Trump’s “Liberation Day” announcements. The direction of trade policy could significantly shape the second quarter’s economic trajectory, with ripple effects on inflation, consumer confidence, and global trade relations.
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