MARKETS
Stock Market and Stocks
U.S. stocks mostly fell in early trading Tuesday, extending Monday’s steep losses on recession fears as more companies expressed worries about the consumer.
About 70% of America’s economy is consumer-driven. Lately, surveys have shown consumers are feeling less optimistic and now businesses are sounding alarms.
Retail giant Walmart was the first last month to suggest consumer spending may slow. Since then, major airlines, including Delta and American, and retailers like Dick’s have joined the chorus.
The warnings compound jitters stemming from President Donald Trump‘s back-and-forth tariff comments that have whipsawed investors.
Trump said Tuesday morning he has ordered his administration to raise tariffs on Canadian steel and aluminum imports by an additional 25%, bringing the total duties to 50%. The additional tariff is in response to a decision by Ontario’s government to slap a 25% tax on electricity exports to the U.S.
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Stocks went into a tailspin on Monday after Trump declined in an interview on Sunday to rule out a recession this year. Instead, he emphasized “a period of transition” that’s happening.
ING economists said “scattered calls for a U.S. recession” are “probably overblown.”
Nevertheless, around 10:07 a.m. ET, the broad S&P 500 fell 0.32%, or 17.8 points, to 5,596.76; the blue-chip Dow dropped 0.79%, or 332.34 points, to 41,579.37; and the tech-heavy Nasdaq edged up 0.11%, or 19.76 points, to 17,488.08 after having its worst day since 2022 on Monday. The Nasdaq is also at least 10% below its all-time high, which means it’s in correction territory.
The benchmark 10-year yield rose to 4.236%.
Corporate news
- Oracle’s quarterly earnings missed analysts’ expectaions and issued a disappointing sales outlook. Shares of the cloud-services company fell 3.35%.
- Delta Air cut its outlook due to reduced consumer and corporate confidence and economic uncertainty. Shares shed 3.7%.
- American Airlines said it now expects to lose between $0.60 and $0.80 per share in the first three months of the year, a wider loss than the $0.20 to $0.40 per share it previously forecast. It said revenue would likely be flat on the year compared with a January estimate of a rise of as much as 5%. It cited a softer domestic leisure segment, primarily in March as one of the reasons for the diminished outlook. Shares slid 2.32%.
- Southwest Airlines said it will begin to charge for checked bags, reversing its two free bag policy, to garner more revenue. Shares jumped 8.48%.
- Tesla shares, which dropped 15% on Monday, added 2.66% after Trump said overnight on social media he would buy a new Tesla to support Elon Musk, Tesla’s chief executive and the person behind the Department of Government Efficiency which is slashing federal government.
- Dick’s Sporting Goods topped earnings estimates in the last three months of the year but said comparable sales growth will slow this year. Shares of the sporting goods retailer dropped 1.54%.
- Kohl’s missed quarterly estimates, sending the retail chain’s shares tumbling 16.43%.
- Illumina lowered its 2025 financial guidance and plans to reduce spending because China barred sales of its devices. Shares of the maker of genetic-sequencing machines added almost 3%.
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Cryptocurrency
Bitcoin rebounded early Tuesday above the key psychological $80,000 mark, but pressure is expected to continue in the near-term as investors remain risk averse amid extreme market volatility, some analysts said.
Bitcoin was last up 2.29% at $80,551.94.
Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at [email protected] and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday.
