Today, we will tell you about the Stock Market. Dow sinks 650 points | S&P 500 wipes out gains made after the election as the Trump trade war rages on. Let’s start:
The S&P 500 ( ^GSPC) has slashed its gains after the election on the session of volatility on Tuesday, when stocks reacted to new tariffs regarding Canada, Mexico, and China.
The Dow Jones Industrial Average ( DJI) dropped around 1.5 percent, or nearly 700 points, after losses increased to the end of the day, while the S&P 500 decreased by about 1.2 percent, reaching its lowest point in the past four months. The Nasdaq, a tech-oriented stock Composite ( ^IXIC) that was trading in green during a portion of the day’s trading, ended the day down around 0.4 percent but managed to stay out of the territory of correction.
The market is reversing as they examine the potential impact of Trump’s massive tariffs on the country’s major trading partners. The new measures- 25 tariffs of 25 percent for Canada and Mexico and a doubling of China’s duties to 20% % were put into effect at midnight ET on Tuesday.
5 Things to Know Before the Stock Market Opens
Canada responded with a broad array of taxes in the form of tariffs on US imports, and China countered with 15% tariffs on US agricultural products like pork and chicken, which will take effect on 10 March. China’s response was viewed as less threatening than the one they had anticipated, leaving room for negotiations with Trump.
Target (TGT) warned that tariffs could affect its first-quarter profits as it announced an increase in earnings before the bell. The stock of the retail giant did not change much in the early trading. In contrast, its sector rival Best Buy (BBY)put out a modest sales estimate for the year in addition to its quarterly sluggish. A further warning of a heightened level of consumer anxiety led to the stock’s decline.
