Skip to content
Home
Stock market today: Nasdaq erases gains, S&P 500, Dow extend declines as Trump boosts Canadian steel, aluminum tariffs
- President Donald Trump on Tuesday said he’s boosting Canadian steel and aluminum tariffs to 50%, with the new duties set to go into effect on Wednesday.
- In a post on Truth Social, the president said the increase is in response to Ontario Premier Doug Ford’s decision to impose a 25% surcharge on electricity exports to the United States.
- “Based on Ontario, Canada, placing a 25% Tariff on ‘Electricity’ coming into the United States, I have instructed my Secretary of Commerce to add an ADDITIONAL 25% Tariff, to 50%, on all STEEL and ALUMINUM COMING INTO THE UNITED STATES FROM CANADA, ONE OF THE HIGHEST TARIFFING NATIONS ANYWHERE IN THE WORLD,” Trump wrote.
- Stocks erased earlier gains following Trump’s post, with the Nasdaq falling from session highs to trade just around the flatline.
- The Dow fell nearly 1% while the S&P 500 dropped around 0.4%.
- In addition to these tariffs, Trump also threatened to “substantially increase” tariffs on cars coming into the US from Canada, adding these tariffs, “will, essentially, permanently shut down the automobile manufacturing business in Canada. Those cars can easily be made in the USA!”
- Labor market data released Tuesday was largely in line with Wall Street’s expectations as investors watch closely for any further signs of cracks forming in the US economy.
- New data from the Bureau of Labor Statistics released Tuesday showed there were 7.74 million jobs open at the end of January, an increase from the 7.51 million seen in December.
- The December figure was revised lower than the 7.6 million open jobs initially reported, mamarking the largest sequential drop seen across the data in over a year. Economists surveyed by Bloomberg had expected Tuesday’s report to show 7.6 million openings in January.
- The Job Openings and Labor Turnover Survey (JOLTS) also showed 5.39 million hires were made during the month, up slightly from the 5.37 million made during December. The hiring rate held flat at 3.4%.
- Tuesday’s report also showed the quits rate, a sign of confidence among workers, rose to 2.1% up from the 1.9% seen the two months prior.
- US stocks opened lower on Tuesday, extending the prior session’s brutal sell-off as fears escalated over the health of the US economy.
- The Dow Jones Industrial Average (^DJI) and the S&P 500 (^GSPC) each fell around 0.2%, losing hold of small gains earlier in premarket trading. The tech-heavy Nasdaq Composite (^IXIC) dropped about 0.1% after logging its worst daily loss since 2022.
- Kohl’s (KSS) put out a downbeat 2025 outlook this morning, driving a 16% tumble in shares before the bell.
- The department store forecast profit below Wall Street estimates, and it now sees a deeper drop in sales than expected.
- Kohl’s now sees earnings per share of between $0.10-$0.60, versus the $1.23 anticipated. Comparable sales are expected to fall 4% to 6%, compared with the 0.9% expected.
- The gloomy view is just the latest sign that retailers are under pressure as American shoppers concerned about inflation and a trade war choose to spend carefully.
- Yahoo Finance’s Ines Ferré reports:
- Read more here.
- Airline stocks sank in premarket trading Tuesday after Delta Air Lines (DAL) cut its outlook for the current quarter, citing softening domestic demand amid “macro uncertainty.”
- Delta stock fell 7%, while United Airlines declined 4.5%, and American Airlines (AAL) dropped 3% as concerns swirled about a consumer slowdown.
- In a release on Monday, Delta revised its revenue growth to 3%-4% for the first quarter, down from 7%-9% previously forecast, Yahoo Finance’s Josh Schafer reported. Profits are also expected to take a hit, with earnings per share expected to be in a range of $0.30-$0.50 in the first quarter, down from $0.70-$1.00 previously.
- Then, on Tuesday, American forecast a bigger first quarter loss, as tariff pressures and government spending uncertainty weighed on the outlook for travel demand.
- Southwest (LUV) also cut its revenue growth forecast, though shares rose after the budget carrier announced it would begin charging for some checked bags in an effort to boost earnings. The policy shift hinted at the growing influence of activist investor Elliott Management at the company as it pushes to revamp Southwest’s business model.
- An early trend to call out as we get ready for earnings season in a few weeks: the DOGE impact on corporate America.
- Southwest (LUV) mentioned “less government travel” in its sales warning today. Delta (DAL) CEO Ed Bastian slightly hinted at an impact in a TV interview following its own sales warning late on Monday.
- HPE (HPE) CEO Antonio Neri tells me he is monitoring the potential impact of DOGE — which for his company would come in the form of fewer server orders.
- Yahoo Finance’s Josh Schafer reports:
- Read more here.
- Gold (GC=F) rose past $2,900 an ounce as Wall Street’s sell-off eased, though investor concerns over the US economy persisted.
- Bloomberg News reports:
- Read more here
- President Donald Trump has taken a different approach to the stock market during his second term in office.
- Namely: he appears to have outsourced the responsibility.
- And after a sharp sell-off across the stock market on Monday saw post-election gains across the major indexes and several key tech stocks that have powered the market wiped out, it was not the president, but rather the vice president that appeared to do the talking to investors.
- In a post on X, the social media platform owned by Elon Musk, a key member of Trump’s administration, Vice President JD Vance said companies that build in the US will be rewarded; for companies building outside the US, “you’re on your own.”
- Last week, the president said, “I’m not even looking at the market” as the rollout of his tariff policy shook investor confidence.
- Unlike his first term in office, Trump has also not spoken explicitly about the Federal Reserve and his view on policy. (Last time around, Trump repeatedly called for lower rates.)
- Instead, Treasury Secretary Scott Bessent has repeatedly expressed a view that Treasury yields should be lower amid Trump’s push to clean up the federal budget and rein in spending across the government.
- Given the speed and depth of the market’s sell-off since hitting record highs on Feb. 19, however, we’ll see how long the president can hold this new line.
