Major United States benchmarks continued declines on Tuesday (Wednesday AEDT) as market volatility intensified amid uncertainty over new tariffs proposed by President Donald Trump.
The ongoing trade policy confusion has pushed the S&P 500 close to correction territory, marking a near 10% decline from its recent highs.
The Dow Jones Industrial Average fell 478.2 points, or 1.1%, to close at 41,433.5. The S&P 500 declined 0.8% to 5,572.1, while the Nasdaq Composite edged 0.2% lower to 17,436.1.
Sentiment took a hit after Trump announced on Truth Social that tariffs on Canadian steel and aluminum would double to 50% from 25%, effective Wednesday.
The decision was in response to Ontario Premier Doug Ford’s 25% surcharge on electricity exports to the U.S.
However, later in the day, Ford stated he would temporarily suspend the surcharge after discussions with U.S. Commerce Secretary Howard Lutnick.
By the afternoon, White House trade adviser Peter Navarro told CNBC that the administration would not proceed with the tariff hike.
Economic concerns deepened after Delta Air Lines slashed its earnings outlook due to weaker U.S. demand, sending its stock down 7.3%.
Among economic data releases, the Job Openings and Labor Turnover Survey (JOLTS) showed a slight increase in job openings for January.
Postings rose to 7.74 million, up 232,000 from December, surpassing estimates of 7.63 million.
Attention now shifts to February’s consumer price index (CPI) data, set for release on Wednesday. Investors will be closely watching inflation trends, which could influence Federal Reserve policy.
On the bond markets, 10-year and 2-year rates were up 1.5% each at 4.284% and 3.949%, respectively.
