Stock Market Continues to Drop as Tariff Fears Rise
Serious economic fallout could be coming as a result of new tariffs the United States has imposed on Canada and Mexico. The stock market is already feeling it as it dips lower.
On Tuesday, the stock market was in sharp decline ahead of tariffs that were about to go into effect for both Canada and Mexico after a month of delay. The Dow Jones was down 1.55%, and the Nasdaq Composite fell 0.35%, with the S&P 500 losing 1.22%.
This was a little better than Monday’s closing numbers, but the market was still in a state of decline that spells disaster for the economy in the short term, at least. The bright side of this is that the tariffs being instituted this week may not last for very long. The United States may be able to reach an agreement with the two countries, as it did last month, so that tariffs can be pulled back.
The US Federal Reserve may help out if the economy slows too much, bringing interest rates down with three new cuts of 25 basis points this year. They will be hesitant to do so, though, since inflation is still high and sticky.
Take Advantage of the Dip
The stock market is expected to recover from this slump, but for now, the low stock prices are an appealing target for investors looking for potential growth. Even the leading stocks from all of last year and much of this year are low at the moment, including Tesla (TSLA), down 4.43%, and Meta (META), down 2.30%.
On the bright side, a few top stocks are staying high at the moment. Microsoft (MSFT) is up a marginal 0.03%. Nvidia (NVDA) is back on track with a 1.69% bump, and Google (GGOG) climbed 2.34% on Tuesday before trading closed off. These few stocks are leading the charge for the stock market to recover, and investors will want to take advantage of the decline quickly before the prices go back up. Tariff fears are expected to quickly dissipate as the three countries come to an agreement, which would be in everyone’s best interests.
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