U.S. stocks plunged Tuesday as President Donald Trump‘s tariffs on key trade partners came into effect, prompting retaliatory measures and intensifying global trade tensions.
The Dow Jones Industrial Average fell 1.8%, extending Monday’s sharp decline of nearly 650 points and heading towards its worst performance of 2025. The S&P 500 decreased by 1.7%, while the Nasdaq Composite dropped 1.9%, putting it on course to enter correction territory, defined as a 10% drop from its recent peak.
Read More: Trump Tariffs Will Raise Prices ‘Within Days,’ Target CEO Says
Affected countries announced retaliatory measures, further dampening investor sentiment.
China announced retaliatory tariffs of up to 15% on certain U.S. products, including chicken, wheat, corn, and cotton. Canadian Prime Minister Justin Trudeau declared that Canada would impose a 25% tariff on U.S. goods. Mexican President Claudia Sheinbaum stated that Mexico would respond with tariffs and other measures, to be announced on Sunday.
The yield on the US 10-year Treasury note fell to 4.13% on Tuesday, its lowest level since October 2024. Markets are now pricing in three quarter-point rate cuts by the Federal Reserve in 2025, according to data from CME FedWatch. The iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) slipped 0.58%.
Natural gas futures rose more than 8% on Tuesday, above $4.45/MMBtu, the highest since December 2022. Stockpiles remain below the five-year average due to earlier extreme cold in the U.S. while LNG export flows have reached record levels. The United States Natural Gas Fund LP (NYSE:UNG) ETF climbed 8.5%.
Bitcoin (CRYPTO: BTC) continued Monday's decline to trade below the $84,000 mark, leading crypto markets lower.
Tuesday’s Performance In Major U.S. Indices, ETFs
According to Benzinga Pro data:
Tuesday's Stock Movers:
Shares of Okta, Inc. (NASDAQ:OKTA), bucked the market trend, surging 18% after the company reported better-than-expected financial results on Monday.
Stocks reacting to company earnings reports included:
Companies reporting after Tuesday's closing bell include:
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