For the second consecutive day, Wall Street saw a decline in stock prices driven by growing apprehensions that Donald Trump’s tariffs might adversely impact the US economy. By Tuesday afternoon, the S&P 500, a benchmark for blue-chip stocks, had dropped approximately 0.9%, while the Nasdaq Composite, known for its emphasis on technology firms, experienced a 0.2% decrease.
During the course of Tuesday, the S&P 500 briefly dipped below its closing price from November 5, effectively nullifying all gains accumulated since the election. However, it managed a slight recovery above those levels by the end of the session.
Initially, stocks surged following Trump’s electoral triumph, as investors were optimistic about potential tax cuts and deregulation that he promised, anticipating that these measures would drive corporate profits upward. Just a couple of weeks ago, the S&P 500 was basking at an all-time high, having risen more than 6% since the electoral outcome.
Yet, recent concerns have largely wiped out these gains, as investors worry about the repercussions of Trump’s assertive protectionist trade agenda on the US economy. On Tuesday, the US implemented 25% tariffs on imports from Canada and Mexico, along with an additional 10% tariff on goods from China. All three nations signaled their intentions to retaliate, intensifying worries about the onset of a trade war.
