Trump’s tariffs delete profits after the US selection for financial markets – National

Supplies have earned more losses on Wall Street Tuesday as a trade war Between the USA of his key trade partners, they escalated, wiping all the gains from the day of the S&P 500 election.

Trump’s administration has imposed tariffs on imports from Canada and Mexico starting from Tuesdays and doubled the tariff against imports from China. All three countries have announced retribution, which causes concern about slowing down the global economy.

The S&P 500 fell 1.2% and more than 80% of the stock in the reference index closes lower. The industrial average Dow Jones slid 1.6%.

Nasdaq composite slid 0.4%. The technologically difficult index has briefly reached a decrease of 10% of its latest maximum closure, which is what the market considers correction, but gets for Nvidia, Microsoft and other technological heavy weights compared to that loss.

Financial supplies were among the most difficult weights on the S&P 500 index. The JPMORGAN Chase fell 4%and the bank of America lost 6.3%.

The markets in Europe fell sharply and the German Dax fell 3.5% while car manufacturers saw sharp losses. Stocks in Asia recorded a more modest fall.

“The markets have a difficult time, they even set expectations to make this trade war look,” said Ross Mayfield, an analyst of the investment strategy at Baird. “This is obviously a step in the level higher than everything we saw during the (Trump) first term.”

The market could soon face more bend in a tariff drama. President Donald Trump addressed a joint session of Congress on Tuesday night. After closing the bell, the Howard Lutnick Store Secretary told Fox Business News that the US is likely to meet Canada and Mexico “in the middle” on the tariffs, and the announcement arrived on Wednesday.

The recent decline in US shares has deleted all the profits of the market from Trump’s elections in November. This set was built to a large extent on the hopes of policies that would strengthen the American economy and companies. Concerns of tariffs that increase consumer prices and ruling inflation weighing both the economy and the Wall Street.

Tarife encourages the trader warnings, including Target and Best Buy, as they report on their latest financial results. Target fell by 3% despite beating the prognosis of Wall Street earnings, saying that it would be “meaningful pressure” to his profit to start the year due to tariffs and other costs.

Best Buy fell 13.3% for the highest drop in S&P 500 shares after he gave investors a forecast of earnings less than expected and a warning on tariff influences.

“International trade is critically important for our business and industry,” said Best Buy CEO Corie Barry.

Barry said that China and Mexico are the first two sources for the products they sell Best Buy, and also expects suppliers to transfer tariff costs, which would increase prices for US consumers.

Imports from Canada and Mexico will now be taxed to 25%, and Canadian energy products are subject to 10% of import duty. The 10% tariff that Trump put in Chinese imports in February was doubled to 20%.

The retalies were fast.

China responded to new US tariffs, announcing that it would impose additional tariffs up to 15% on imports of key American farms, including chicken, pork, soybean and beef, and expanded business controls with key American companies. Canada plans to slap the tariffs on more than $ 100 billion in US goods during 21 days. Mexico also plans to be tariff on the goods imported from the USA

Companies in the S&P 500 end the latest circle of quarterly financial statements. For the fourth quarter, they recorded a wide earnings of 18%. But Wall Street has already reduced the expectations for a liquid quarter to about 7% growth of slightly more than a prognosis of 11% at the beginning of the year.

“There are more growth hit that we will ask the companies,” said Kevin Gordon, a senior investment strategist at Charles Schwab.

Profit concerns are followed by a series of economic reports with worrying signals involving American households that become more pessimistic in terms of inflation and withdrawal. Consumer consumption is basically initiated American economic growth despite high interest rates.

Wall Street hoped that the federal reserves would continue to lower interest rates in 2025. The central bank, however, signaled more caution, partly because of the uncertainty about the economic influence of the tariff. The Fed is expected to hold rates at its upcoming meeting later in March.

Fed has increased interest rates to the highest level in two decades to tame the inflation. He began to reduce his reference rate 2024, as the inflation rate approached the goal of 2%. But inflation remains stubbornly just above that goal, and the tariffs threaten by increasing prices, which could stimulate inflation.

Treasury yields have been mixed in the bond market. The yield of 10-year treasury increased to 4.20% from 4.16% late on Monday. It was still abruptly reduced from last month, as it approached 4.80%, as worries increased on the power of the American economy.

“Since the tariffs are in force and there is no guarantee that they are probably temporary, it is filtering on the bond market and we notice the threat of a higher inflation that impairs the value of a 10-year note,” said Stovall, the main investment strategist in CFRA.

The yield of two -year treasury was constantly 3.94%.

All in all, S&P 500 dropped 71.57 points to 5,778.15. Dow fell to 670 points at 42,520.99, and Nasdaq dropped 65.03 points at 18.285,16.

AP Business writers Matt Ott and Elaine Kurtenbach contributed.

& copy 2025. Canadian printing