US stocks fell sharply on Tuesday as fresh doubts emerged over the path of global trade negotiations. The Dow Jones Industrial Average slid 390 points, or 0.95%, closing at 40,829. The S&P 500 shed 0.77%, while the Nasdaq fell 0.87%. It was the second straight day of losses across the major indexes.
Trump softens stance on trade deals
During a high-profile meeting with Canadian Prime Minister Mark Carney, President Trump appeared to cast uncertainty over the likelihood of imminent trade deals.
“We don’t have to sign deals,” he told reporters, contradicting both his own recent remarks and comments from Treasury Secretary Scott Bessent. On Monday, Bessent had suggested that the administration was nearing trade breakthroughs with several key partners.
UK strikes major deal with India
Meanwhile, the UK and India finalised a landmark free trade agreement, cutting tariffs on 90% of British exports and unlocking procurement access to roughly £38 billion worth of Indian government tenders annually. The deal is expected to add £4.8 billion to the UK economy by 2040 and was hailed as the most comprehensive post-Brexit trade pact to date.
Weakness in autos, tech drags on sentiment
Tesla shares lost 1.8% after data showed April car sales in the UK and Germany hit two-year lows, even as overall electric vehicle demand rose. Goldman Sachs also slipped 1.8%, contributing to the Dow’s decline. Major tech names like Nvidia and Meta Platforms moved lower as well, adding pressure on the broader market.
Fed meeting in focus
Investors are now turning their attention to the Federal Reserve, which began a two-day policy meeting on Tuesday. The central bank is widely expected to hold rates steady
DoorDash makes international play
In corporate news, DoorDash announced two major acquisitions: a $3.9 billion deal for UK-based food delivery firm Deliveroo and a $1.2 billion purchase of restaurant tech platform SevenRooms. The moves are aimed at expanding DoorDash’s global footprint and diversifying its offerings beyond food delivery. Shares of DoorDash fell 5% on the news, following mixed earnings.
Commodities and the dollar
WTI crude is trading 3.31% higher at US$59.02 a barrel.
Brent crude is trading 3.01% higher at US$62.04 a barrel.
Spot gold is trading 0.01% lower at US$3,431.36 an ounce.
One Australian dollar is buying 64.95 US cents.
Futures
The SPI futures are pointing to a 36 point fall at the open.
