U.S. stocks fell on Tuesday, adding to the biggest selloff in months, as investors worried about the impact of the latest tariff threats on the global economy.
Trading was volatile, following conflicting tariff updates, while progress toward a ceasefire between Ukraine and Russia briefly lifted equities.
The S&P 500 index dropped as low as 5,528.41 points, briefly marking a 10% fall from its record closing high of 6,144.15 on February 19, which is commonly known as a market correction. President Donald Trump said he would double tariffs set to take effect within hours on all imported Canadian steel and aluminum products to 50%.
The latest tariff threat added to investor unease that Trump’s trade policies, which include tariffs against Canada, Mexico and China, could trigger an economic slowdown or cause a recession.
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On Monday, the S&P 500 recorded its most significant one-day drop since December 18, wiping out just over $1.3 trillion in market value, and a staggering $4 trillion from its recent peak. The tech-heavy Nasdaq confirmed a 10% correction late last week.
The benchmark S&P index is down more than 3.4% over the past two sessions, its largest drop since early August.
“That creates just angst and nervousness in the market, so you’re going to continue to get the ‘shoot first, ask questions later’ type of reaction, which is exactly what you’re getting,” said Ken Polcari, chief market strategist at SlateStone Wealth in Jupiter, Florida.
Stocks gained some traction after the U.S. agreed to resume military aid and intelligence sharing with Ukraine immediately after talks in Saudi Arabia in which Kyiv voiced readiness to accept a U.S. proposal for a 30-day ceasefire in its conflict with Russia, the countries said in a joint statement.
Adding to the positive momentum, Ontario’s premier said he had agreed to suspend the Canadian province’s 25% surcharge on exports of electricity to Michigan, New York and Minnesota.
“The market’s looking for something to get hopeful about after the last week or so, but we always say it’s hard to make changes based on something that might happen,” said Chris Fasciano, chief market strategist at Commonwealth Financial Network in Waltham, Massachusetts.
“So until you see an idea,
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