Wall Street Drop Deepens As Trade War Fears Escalate, S&P 500 Hits 7-Month Lows: What’s Driving Markets Tuesday?
Wall Street’s losing streak extended into Tuesday, with stocks deepening their slump as continued trade war fears rattled investor sentiment.
The Nasdaq 100 slipped 0.6% by midday trading in New York after suffering on Monday its worst single-day drop since September 2022 in the prior session.
The broader S&P 500 slid to a seven-month low, amplifying concerns over the market’s near-term trajectory.
The proportion of S&P 500 stocks trading above their 200-day moving average has now shrunk to 44%, the lowest since November 2023. Each sector traded in the red, highlighting broad-based market weakness.
The Dow Jones Industrial Average was the biggest underperformer on Tuesday, with industrial stocks bearing the brunt of escalating trade tensions.
On Tuesday, President Donald Trump escalated trade tensions by raising tariffs on Canadian steel and aluminum imports to 50%, responding to Ontario’s move to levy a 25% tariff on electricity exports to the U.S.
In a Truth Social post, Trump announced he had instructed the Commerce secretary to enforce the additional 25% tariff, which will take effect Wednesday morning.
On the macroeconomic front, …
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