A new week of trading begins with the stock market facing increasing uncertainty due to tariffs on steel and aluminum imports. The US President’s imposition of a 25% tariff on these goods has caused significant dips in the market, and fears of a recession are growing.
The European Union has also announced retaliatory tariffs on US-imported goods worth $28 billion, which could impact the dollar and US stock markets. Tariff tensions between the US and Canada continue to simmer, with both sides threatening tariffs as high as 50%.
Meanwhile, investors will be watching the Consumer Price Index (CPI) report due later this week, which is expected to show a 0.3% increase in February. This could lead to a slight decrease in headline inflation, prompting some interest rate cuts from the Federal Reserve.
The current market reading is bearish, with the Dow Jones down by 1.14%, and the Nasdaq Composite falling by 0.18%. The S&P 500 also experienced significant losses, declining by 0.78% yesterday.
Source: https://www.fxleaders.com/news/2025/03/12/what-to-know-before-the-stock-market-opens-on-wednesday