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Tue, Mar 4, 2025, 11:45 AM 1 min read
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US markets eliminated each of their post-election gains arsenic stocks responded to caller tariffs connected Canada, Mexico, and China.
The Dow Jones Industrial Average (^DJI) fell astir 0.7%, disconnected of its league lows, portion the benchmark S&P 500 (^GSPC) dropped 0.3% aft scaling backmost steeper losses. The Nasdaq Composite (^IXIC) was the lone scale successful the green, rising 0.6% aft besides paring losses. It had been heading for correction territory earlier successful the session, initially connected way to adjacent down astatine slightest 10% from its grounds closing precocious connected Dec. 16.
Rising fears of a full-on commercialized warfare drove Monday's sell-off aft the president said determination was "no country left" for Canada oregon Mexico to onslaught a woody to mitigate promised tariffs.
Stocks are retreating arsenic markets measure the apt interaction of Trump's broad tariffs connected America’s apical trading partners. The measures — caller 25% tariffs connected Canada and Mexico, and a doubling successful China duties to 20% — were signed into effect astatine midnight ET connected Tuesday.
SNP - Free Realtime Quote USD
As of 3:10:42 PM EST. Market Open.
^GSPC ^DJI ^IXIC
Canada deed backmost with a sweeping bundle of contiguous tariffs connected US imports, portion China retaliated with further 15% duties connected US workplace products specified arsenic chickenhearted and pork, to travel connected March 10. Many saw Beijing's effect arsenic little assertive than feared, leaving country for dialog with Trump.
Target (TGT) warned that tariffs volition enactment pressure connected archetypal 4th nett arsenic it delivered an net bushed earlier the bell. The retail giant's banal was small changed successful aboriginal trading. Meanwhile, its assemblage adjacent Best Buy (BBY) put retired a muted yearly income forecast alongside its ain quarterly beat. The further motion of user caution helped nonstop its shares lower.
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Here's wherever state prices volition emergence post-Trump tariffs
Yahoo Finance's Ines Ferré reports
Intel drops 7% pursuing TSMC's $100 cardinal US investment
Intel (INTC) banal sank 6% midday Tuesday, adding to Monday's 4% driblet aft its Taiwanese rival TSMC (TSM) joined President Trump astatine the White House to denote a $100 cardinal concern successful its US manufacturing capabilities.
Intel banal had risen arsenic overmuch arsenic 5.5% earlier successful the time Monday connected a Reuters study that AI spot designers Nvidia and Broadcom are investigating its caller manufacturing technology but sharply reversed absorption pursuing the TSMC announcement.
Intel began making chips for extracurricular customers successful 2021, and the storied chipmaker has positioned itself arsenic the American alternate to overseas semiconductor manufacturers — namely TSMC — arsenic the US pushes to bring backmost home spot accumulation and support its pb successful the emerging AI market. Analysts person wide argued that the US tin amended execute its extremity by incentivizing TSMC to grow US operations alternatively than betting connected troubled Intel.
Intel shares had experienced a historic rally earlier successful February connected quality that the US authorities was moving connected a woody with TSMC to assistance the ailing chipmaker. Intel past week pushed backmost the deadline for its $28 cardinal Ohio spot mill to travel online.
Financials pb sectors lower
It was a oversea of reddish connected Tuesday, with each 11 sectors successful antagonistic territory arsenic Trump's tariff escalations wreaked havoc connected Wall Street.
Financials (XLF) led the mode lower, down 3%, followed by Consumer Discretionary (XLY) and Industrials (XLI), which declined 1.5% and 1.4%, respectively.
Within the tech sector, Nvidia shares (NVDA) roseate 2% aft falling astir 9% connected Monday. Alphabet shares (GOOG, GOOGL) besides traded 2% higher portion Meta (META) and Tesla (TSLA) continued to slide, down astir 3% and 5%, respectively.
Yields plummet arsenic marketplace sell-off, maturation fears promote formation to safety
As stocks sell-off, investors are flocking to the enslaved market.
US Treasury yields are present trading astatine levels not seen since precocious past twelvemonth arsenic investors interest Trump's tariffs volition wounded economical enlargement and the labour market, perchance prompting the Federal Reserve to little the outgo of borrowing even arsenic risks of higher prices stay tilted to the upside.
The 10-year output (^TNX) has sunk implicit 63 ground points from its January precocious to commercialized astatine conscionable astir 4.15%.
But arsenic Citi expert Stuart Kaiser enactment it successful a caller enactment connected Monday, "Rates are little for the 'wrong' reasons."
Recent information has highlighted these maturation concerns, marking the instrumentality of "bad quality for the system is atrocious quality for stocks." On Monday, ISM Manufacturing prices paid came successful astatine their highest since June 2022 portion caller orders fell into contraction, suggesting a "stagflationary" environment successful which maturation slows but terms increases stay elevated.
Meanwhile, assurance plummeted successful February, notching its biggest monthly diminution successful astir 4 years arsenic 12-month ostentation expectations jumped and recession fears escalated. The latest user sentiment reading besides highlighted greater concerns astir tariffs and the interaction those and different policies could person connected ostentation and the broader economy.
Traders present expect 3 complaint cuts from the Federal Reserve this year, according to the CME FedWatch Tool.
Markets pricing successful much Fed complaint cuts 'is not a bully thing' for markets
As weaker-than-expected data has spurred concerns astir US economical growth, markets person moved to terms successful much easing from the Federal Reserve this year.
On Tuesday, traders were betting connected 3 interest-rate cuts from the Fed successful 2025, for the archetypal clip this year. Debate astir erstwhile the Fed's adjacent complaint chopped volition travel has intensified too. Markets present spot a 50/50 accidental the Fed lowers rates astatine its May meeting, per the CME FedWatch Tool. Just a week ago, they were pricing successful a 75% accidental the Fed would clasp rates dependable that month.
But stocks person slumped amid a shifting Fed narrative, and the S&P 500 (^GSPC) is present astatine its lowest level since earlier Donald Trump won the statesmanlike predetermination successful November.
SNP - Free Realtime Quote USD
As of 3:10:42 PM EST. Market Open.
While complaint cuts could bring benefits similar little borrowing costs for corporates, Citi equity strategist Drew Pettit sounded a enactment of caution. He told Yahoo Finance that if brushed economical information drives the Fed to easiness monetary policy, markets won't invited the quality arsenic they person successful the past.
"'Fed cuts due to the fact that of anemic economical data' is not a bully happening for markets anymore," Pettit said. "If we were talking astir this 2 months ago, you cognize 'Fed cuts against a resilient backdrop' was bully for markets."
The 'Trump bump' is gone arsenic markets hitch retired post-election gains
US markets person eliminated each their post-election gains arsenic stocks deepen their sell-off with caller tariffs connected Canada, Mexico, and China present officially successful effect.
The S&P 500 (^GSPC) has erased astir $3.3 trillion successful marketplace cap since its grounds closing precocious of 6,144.15 connected Feb. 19. At that time, the benchmark index's post-election gains had been hovering astatine conscionable astir 6%.
Since the commencement of 2025, the S&P 500 is down astir 2% portion the Nasdaq Composite (^IXIC) is disconnected astir 6% and is presently flirting with correction territory, connected way to adjacent 10% disconnected its grounds high. The blue-chip Dow (^DJI) is trading conscionable hardly successful the greenish for the year.
DJI - Free Realtime Quote USD
As of 3:10:44 PM EST. Market Open.
^DJI ^GSPC ^IXIC
Only a fewer months ago, stocks traded astatine accordant records arsenic Donald Trump's statesmanlike triumph fueled bullish Wall Street euphoria connected hopes of pro-business policies and little taxes.
Flash guardant to today, and that euphoria has each but evaporated arsenic Trump's tariffs spark maturation fears portion ostentation remains stubbornly elevated.
"Many of the cardinal trends successful fiscal markets successful the run-up to and contiguous aftermath of the US predetermination past November person stalled oregon partially reversed since President Trump took bureau past month," Jonas Goltermann, lawman main markets economist astatine Capital Economics, wrote successful a enactment past week.
"Since then, US Treasury yields person dropped back, the 2-10s curve has flattened, US equities person struggled some successful implicit presumption and comparative to those elsewhere, and the dollar has dropped back," helium said. "In different words, the 'Trump trade' communicative that dominated galore markets successful Q4 is floundering."
US stocks descent astatine the open
US stocks continued their sell-off connected Tuesday arsenic caller tariffs connected Canada, Mexico, and China officially went into effect astatine midnight.
The Dow Jones Industrial Average (^DJI) fell astir 0.7%, portion the benchmark S&P 500 (^GSPC) dropped 0.8%. The tech-heavy Nasdaq Composite (^IXIC) shed astir 0.9%, arsenic each 3 indexes took a limb lower.
DJI - Free Realtime Quote USD
As of 3:10:44 PM EST. Market Open.
^DJI ^IXIC ^GSPC
Treasury Secretary Bessent shrugs disconnected tariff sell-off, says Wall Street isn’t the focus
US Treasury Secretary Scott Bessent argued that a marketplace sell-off successful effect to caller tariffs would beryllium temporary, Bloomberg reports, though helium acknowledged determination whitethorn beryllium a modulation play arsenic caller duties connected Canada, Mexico, and China instrumentality effect.
The Treasury Secretary's comments travel aft stocks plummeted Monday successful effect to the tariffs. On Tuesday morning, futures for Dow Jones Industrial Average futures (YM=F) fell 0.3%, portion S&P 500 futures (ES=F) dropped 0.8%. Contracts connected the tech-heavy Nasdaq 100 (NQ=F) shed astir 1%.
CME - Delayed Quote USD
As of 3:00:44 PM EST. Market Open.
ES=F NQ=F YM=F
Bloomberg reports:
US output curve gets steeper arsenic tariffs enactment maturation astatine risk
The hazard to planetary maturation from Trump's tariffs is rattling enslaved investors, who look progressively convinced that the president is nary longer conscionable making threats arsenic a precursor to a deal.
Traders besides ramped up bets connected the Federal Reserve making much interest-rate cuts than antecedently expected.
Bloomberg reports:
Okta banal jumps connected 'blowout quarter'
Shares of Okta jumped successful premarket trading Tuesday aft the individuality and cybersecurity institution reported coagulated sales, earnings, and 2025 nett guidance.
All 3 metrics bushed Wall Street analysts' estimates arsenic the institution benefitted from accrued firm spending connected cybersecurity extortion amid the AI boom.
Okta banal roseate 14% Tuesday greeting and was a trending ticker connected Yahoo Finance.
"This is simply a blowout quarter," Okta co-founder and CEO Todd McKinnon told Yahoo Finance's Brian Sozzi successful an Opening Bid podcast exclusive. "It's reflective of large deals successful the quarter," McKinnon said, pointing to a 25% surge successful subscription backlog to much than $4 billion.
Ignore the Target net beat
Target's (TGT) earnings conscionable deed the wires.
And portion the net bushed volition rapidly drawback your eyes, it's much important to fastener successful connected this enactment from the merchandise fixed each the hazard astir tariffs:
"In airy of ongoing user uncertainty and a tiny diminution successful February nett sales, combined with tariff uncertainty and the expected timing of definite costs wrong the fiscal year, the institution expects to spot meaningful year-over-year nett unit successful its archetypal 4th comparative to the remainder of the year," Target said.
Target declined to stock circumstantial archetypal 4th net guidance. Yahoo Finance information shows Wall Street analysts were looking for a flimsy archetypal 4th year-on-year net improvement.
Good morning. Here's what's happening today.
Xi leaves doorway unfastened for talks with Trump
China's tit-for-tat determination to Trump was to slap tariffs of up to 15% connected US workplace goods specified arsenic pork and beef, starting adjacent week. That's going down mostly good connected Wall Street, which sees the targeted enactment arsenic designed to debar escalating a commercialized warfare betwixt the world's apical 2 economies.
Bloomberg reports:
President Donald Trump's tariffs instrumentality effect
US President Donald Trump's program for wide-ranging tariffs against Canada and Mexico has occurred with nary further delays.
Yahoo Finance's Ben Werschkul reports:
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