Traders work on the floor of the New York Stock Exchange on March 6, 2025.
NYSE
The Dow Jones Industrial Average fell Tuesday after President Donald Trump placed additional tariffs on Canadian steel and aluminum coming into the U.S.
The 30-stock average lost 455 points, or 1.1%, while the S&P 500 dropped 1.1%. The Nasdaq Composite slipped 0.6%.
In a Truth Social post, Trump said steel and aluminum duties would go up by an additional 25%, bringing them to 50%. He added that the levies would take effect Wednesday.
This is the latest in a series of escalating trade policy moves that have stoked fears of a U.S. economic recession. The White House has place tariffs on Canadian, Mexican and Chinese imports, leading to steep losses in equities.
On Monday, the Nasdaq saw its worst day since September 2022, dropping 4%. The 30-stock Dow, which lost nearly 900 points, closed below its 200-day moving average for the first time since Nov. 1, 2023.
The pullback led Citigroup to lower its rating on U.S. stocks to neutral from overweight, pointing to a “pause in U.S. exceptionalism” as the reason. Adding to worries around the economy was the latest guidance from Delta Air Lines. The company slashed its earnings outlook due to weaker U.S. demand, pushing the stock down more than 5%.
When asked about the possibility of a recession, Trump said during a Fox News interview that aired on Sunday that the economy was going through “a period of transition.” The remarks arrived after Treasury Secretary Scott Bessent told CNBC on Friday that there could be a “detox period” for the economy as the Trump administration slashes federal spending.
“Our takeaway is that the sell-off has been exacerbated by the unwinding of extended positioning in certain market segments, such as momentum and tech stocks, and is not necessarily a signal that US economic risks have escalated significantly,” wrote Ulrike Hoffman-Burchardi, head of CIO global equities at UBS Financial Services.
The Nasdaq Composite has tumbled into correction territory, down more than 10% from a record set in late 2024, while the S&P 500 traded around 9% below its all-time high set in February.
