Early on Tuesday, Wall Street’s major indexes were largely down as they battled to recover from sharp drops brought on by concerns that US President Donald Trump’s tariffs might cause the country to enter a recession.
Investors are worried that Trump’s trade policies could cause a recession in the largest economy in the world. The US president has refused to rule one out after placing tariffs on China, Canada, and Mexico.
After Monday’s worst day since 2022, the tech-focused Nasdaq Composite Index gained 0.4 per cent to 17,533.51 about 15 minutes into trading.
However, the Dow Jones Industrial Average fell 0.6 per cent to 41,672.53, while the broad-based S&P 500 Index took a 0.1 per cent hit to 5,607.05.
“As of right now, things don’t look much better for stocks following a period in which things have gotten progressively worse,” analyst Patrick O’Hare of Briefing.com wrote in his own note.
Before stock prices recovered, a “catalyst” was required, CFRA’s Sam Stovall added.
According to Stovall, consumer inflation data that is due on Wednesday could be one option. Markets may become more optimistic if inflation is seen to be declining steadily, as there is an anticipation that the Fed may lower interest rates even more.
With Delta Air Lines recently lowering its earnings projection due to decreased demand, new guidance from major airlines added to worries about the US economy.
Delta’s stock fell almost 3.3 per cent on Tuesday morning.
