Wall Street Falls as S&P 500 Drops Over 10% from All-Time High
U.S. stock averages declined again on Tuesday following yesterday’s massive sell-off, as investors remained uneasy about President Donald Trump’s trade policies.
All three major Wall Street indexes closed lower. The Dow Jones Industrial Average, which tracks 30 corporate giants, fell 1.14% to 41,433.48 points. The S&P 500, which measures the most valuable companies, dropped 0.76% to 5,572.07 points, while the Nasdaq Composite, which tracks tech stocks, slipped 0.18% to 17,436.10 points.
With this decline, the S&P 500 is now more than 10% below its all-time closing high from February 19, officially entering correction territory. The Nasdaq had already confirmed its own market correction earlier.
Trade Tensions Weigh on Markets
Trump announced a 50% tariff on Canadian steel and aluminum in response to Ontario’s decision to impose a 25% tax on electricity exports to several U.S. border regions. However, a last-minute agreement prevented the measure from taking effect.
Still, Trump’s 25% tariffs on steel and aluminum are set to take effect tomorrow, and the market is still assessing the economic fallout. Concerns are growing over a potential economic slowdown, with some even warning of a possible recession in the world’s largest economy.
If tariffs continue to escalate, many believe the outcome is clear: the first post-pandemic recession. However, if the trade conflict is resolved quickly, the outlook could change.
Sector-Wide Losses
All sectors ended the day in negative territory, with industrials (-1.54%), communications (-1.47%), and consumer staples (-1.46%) among the hardest hit.
Within the Dow Jones, the biggest losers were:
- Verizon (-6.58%)
- Walt Disney (-5.03%)
- McDonald’s (-3.31%)
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