Major United States benchmark averages resumed declines on Tuesday (Wednesday AEST) after early gains as investor concerns resurfaced ahead of a significant escalation in tariffs on Chinese imports.
The Dow Jones Industrial Average fell 320.0 points, or 0.8%, closing at 37,645.6, the S&P 500 declined 1.6% to finish at 4,982.8. The benchmark is now down nearly 19% from its February peak and has dropped over 12% in the past four days.
Meanwhile, the Nasdaq Composite slid 2.2% to 15,267.9, extending its four-day loss to more than 13%.
Markets initially gained ground in early trading as investors cited an oversold environment and grew hopeful that the U.S. might ease trade tensions.
Sentiment was temporarily boosted by President Donald Trump’s announcement on Truth Social of a “great call” with South Korea’s acting president.
Treasury Secretary Scott Bessent also said that about 70 countries had approached the U.S. to negotiate tariffs.
Despite these developments, stocks could not hold their gains. Selling accelerated late in the day, particularly in major tech names like Apple, which closed 5% lower.
Investors are bracing for a new wave of tariffs set to take effect just after midnight. These duties build on a 10% baseline already imposed over the weekend. According to the White House, the total tariff rate on Chinese goods will reach 104% overnight.
On the bond markets, 10-year yields surged 2.1% to 4.291% and 2-year rates fell 1.5% to 3.73%.
