U.S.Stocks Tumble Amid Trade Uncertainty and Fed Focus
U.S. stocks took a hit on Tuesday, driven by doubts about global trade talks and anticipation of the Federal Reserve’s upcoming decision. The Dow Jones Industrial Average fell by 389.83 points, or 0.95%, while the S&P 500 and Nasdaq Composite also declined by 0.77% and 0.87%, respectively.
President Donald Trump’s comments during a meeting with Canadian Prime Minister Mark Carney added to the market’s unease.Trump stated, “We don’t have to sign deals,” which contradicted earlier statements suggesting imminent trade agreements. This shift in tone dampened investor optimism.
Tesla’s stock dropped over 2% as new car sales in Germany and the U.K.reached two-year lows, despite rising demand for electric vehicles. Other tech stocks, including Nvidia and Meta, also fell, along with Goldman Sachs, which dragged the Dow lower.
The federal Reserve began its two-day policy meeting on Tuesday. Analysts expect the central bank to keep interest rates unchanged, with only a 2.7% chance of a rate cut. Investors await Chair Jerome Powell’s insights on the economic impact of renewed tariff tensions.
While Monday’s service sector data showed surprising strength, concerns linger about the long-term effects of trump’s trade policies. Hedge fund manager Paul Tudor jones warned that even partial tariffs could act as significant tax increases,possibly reducing economic growth.
