US Stocks Plunge Amid Trump's Tariff Salvoes
US stocks slid on Tuesday as investors weighed Canada and China's response to President Donald Trump's delivery of new tariffs amid nerves over the prospect of a deepening trade war. The Dow Jones Industrial Average fell about 1%, while the benchmark S&P 500 dropped 0.8%. The tech-heavy Nasdaq Composite shed around 0.9%, as all three indexes took a leg lower to extend their recent sell-off. Rising fears of a full-on trade war drove Monday's sell-off after the president said there was "no room left" for Canada or Mexico to strike a deal to mitigate promised tariffs.
- The market's reaction to Trump's tariff salvoes underscores the volatility that can result when a single event, no matter how anticipated, sends shockwaves through global financial markets.
- As the world waits with bated breath for further moves from the White House, one question remains: How will a prolonged trade war affect the broader global economy?