U.S. stocks plunged on Tuesday as investors reacted to escalating trade tensions between the United States and China. The White House confirmed plans to proceed with a significant increase in tariffs on goods imported from China, sparking fears of a prolonged trade dispute.
The Dow Jones Industrial Average dropped 320.01 points, or 0.84%, closing at 37,645.59. The S&P 500 fell 79.48 points, or 1.57%, to finish at 4,982.77, narrowly avoiding a bear market. The tech-heavy Nasdaq Composite took the hardest hit, plummeting 335.35 points, or 2.15%, to 15,267.91.
All 11 major sectors of the S&P 500 ended the day in the red. Materials and consumer discretionary sectors led the losses, down 2.96% and 2.54%, respectively. Financials experienced the smallest decline, easing just 0.41%.
The market downturn reflects investor concerns over the potential impact of increased tariffs on global trade and economic growth. The decision to raise tariffs has heightened uncertainty, prompting many to reevaluate their investment strategies.
Analysts suggest that continued dialogue between the United States and China could help ease tensions and stabilize markets. However, until a resolution is reached, volatility may persist as traders react to developments in the ongoing trade negotiations.
