It’s been another turbulent day for global markets as investors grapple with uncertainty over U.S. trade policy and economic outlook. Stocks on Wall Street saw sharp declines before partially recovering, with major indices reflecting heightened volatility.
Wall Street declines as trade uncertainty grips markets
The Dow Jones Industrial Average closed down 478 points, or 1.14%, at 41,433, while the S&P 500 lost 0.76%, bringing it close to correction territory—down nearly 10% from recent highs. Meanwhile, the Nasdaq Composite slipped 0.18%, struggling to stabilize after Monday’s steep drop.
Trump’s shifting tariff stance adds to market confusion
Much of Tuesday’s market movement was driven by confusion over President Trump’s evolving stance on trade tariffs. Early in the session, Trump announced he would double tariffs on Canadian steel and aluminum to 50%, a move that rattled investors. Hours later, Ontario Premier Doug Ford suspended his planned surcharge on electricity exports to the U.S., prompting a temporary market rebound. However, a White House trade advisor later clarified that while Trump backed off from the 50% tariff, the original 25% duty would proceed as planned.
Recession concerns mount as corporate outlooks weaken
Investors remain wary of the administration’s unpredictable trade policy, which has weighed on corporate confidence and broader economic sentiment. Delta Air Lines’ profit warning added to recession concerns, with the airline slashing its earnings outlook due to weaker U.S. demand, sending travel stocks like Disney and Airbnb lower.
Investors await key inflation report
Markets are now looking ahead to Wednesday’s inflation report, with analysts warning that any surprise increase in consumer prices could complicate the Federal Reserve’s path toward rate cuts.
Australian markets brace for a tough session
Closer to home, Australian markets are set to open lower, tracking Wall Street’s losses. ASX futures dropped over 100 points before partially recovering. They’re currently pointing to a 75 point fall. Investors were also caught off guard by news that Australia will not receive an exemption from U.S. steel and aluminum tariffs, which take effect tomorrow.
