What to Know before the Stock Market Opens on Wednesday
New tariffs on steel and aluminum imports are going into effect today, with U.S. President Donald Trump imposing a 25% tariff on these goods and causing the stock market to dip.
We are now in the second week of stock market decline, and there are fears that a recession is coming. New tariffs from the United States on imported aluminum and steel are now taking effect and will have their toll on the stock market.
There are now retaliatory tariffs coming from the European Union, and leaders there say that they will have tariffs in effect starting in April. These tariffs will end up affecting $28 billion in goods imported from the United States. That could hurt the U.S. stock markets and the dollar. Fear about those tariffs can also pull the stock market down in the meantime.
Tariff threats continue from multiple sides, with the U.S. and Canada talking about tariffs as high as 50%. Both sides decided to pull back from those excessive tariffs for now, but there is still a risk that they could be coming in the future.
Watch for the CPI
The United States Consumer Price Index report (CPI) is coming later this week. This will indicate where inflation is headed, which has been notoriously sticky for the past few months, prompting the Federal Reserve to hold off on some of its planned interest rate cuts.
The current prediction is that the CPI will show an increase of 0.3% for February. If so, then that would take the headline inflation level down just 0.1% from where it was in January.
The current stock market reading is not very positive. The Dow Jones is down by 1.14%, continuing its long decline. The Nasdaq Composite is down as well by 0.18%, looking to level out after some heavy downward movement. The S&P 500 continues to drop as well, losing 0.78% yesterday.
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