The US stock market plummeted sharply on Tuesday as major indexes fell more than 1% and government bond yields declined. New tariffs imposed by President Donald Trump on imports from Canada, Mexico, and China have raised concerns about the impact on the economy.
The Nasdaq Composite index dropped 10% from its December record high, while the S&P 500 fell over 1% and Treasury yields declined. The Dow Jones Industrial Average also fell sharply, down 764.08 points or 1.75%.
Financials were hit hard, with a decline of 3.9%, making it the biggest loser among major sectors. Experts say the tariffs add to concerns about higher prices for consumers.
China immediately responded to the US tariffs by imposing its own duties on certain imports and restricting exports to designated entities. Canada also launched its own retaliatory measures against US imports.
The move has sparked anxiety among investors, who are watching closely for Trump’s address to Congress later in the day and a key employment report due out next Friday.
Source: https://www.reuters.com/markets/global-markets-wrapup-1-2025-03-04