Financial news is displayed as people work on the floor on the New York Stock Exchange in New York, Tuesday, March 4, 2025. (AP Photo/Seth Wenig) | Photo Credit: Seth Venig
On Tuesday (March 4, 2025) on Wall Street increased as a trade war between the US and its leading business partners, erasing all the benefits for the S&P500 since the election day.
Tariffs between the US, China, Canada and Mexico recently helped expand the recession for American shares which was inspired by signs of weakness in the economy.
S&P 500 fell 1.7%, in which the land was lost in every field in the benchmark index. Dow Jones Industrial Average shed 722 points, or 1.7%, 11:03 pm as eastern time.
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Nasdaq composite fell 1.5%. The Tech-Havi Index is on track to post its most recent end of a decline of 10% from high, which the market considers an improvement. Technology stocks helped to increase market gains in 2024, but in 2025 so far have lost and working as a heavy weight.
Markets fell rapidly in Europe, while Asia saw a slight decline in shares.
The drops follow a steep selling on Monday (March 3, 2025). Overall, the fall has eradicated the benefits of all markets since President Donald Trump’s election in November. The rally was made to a large extent on the expectations of Mr. Trump’s policies that would strengthen the American economy and businesses. Concerns about tariffs that increase consumer prices and rule inflation are weighing both economy and wall street.
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Imports from Canada and Mexico are now being reduced to 25%, in which Canadian energy products are subject to 10% of import duties. Mr. Trump doubled 10% tariff on Chinese imports in February.
Vengeons were sharp.
China responded to the new American tariff, announcing that it would implement an additional tariff of up to 15% on imports of major American farm products including chicken, pork, soy and beef, and extended control over trade with major American companies. Canada plans to slap tariffs over US goods over $ 100 billion during 21 days. Mexico is also planning a tariff on goods imported from America
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Tariffs are warning from retail vendors, including targets and best purchases, as they report their latest financial results. The target fell 5.4% despite defeating Wall Street’s earnings forecasts. Due to tariffs and other costs, there will be “meaningful pressure” on its profits to start the year.
The best purchase fell 14.2% after investors warn about weak-to-intake income forecasting and tariff effects.
“International trade is seriously important for our business and industry,” said Best By CEO Corey Barry.
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Ms. Barry said that China and Mexico are the top two sources for products that sell the best bye and also expect that vendors will be passed with tariff costs, which will increase the price for American consumers.
Warning is coming as companies shut down their latest round of earnings report. In S&P 500, companies reported an increase in comprehensive income of 18% in the fourth quarter. Wall Street has already trimmed the expectations for the current quarter, which has increased by about 7% from 11% forecast at the beginning of the year.
Concerns about profits follow a series of economic reports with worrying signals, including American families to become more pessimistic about inflation and draw back to expense. Consumer spending has compulsorily inspired US economic growth in front of high interest rates.
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Wall Street is hoping that the Federal Reserve will continue to reduce interest rates in 2025. The central bank has indicated more caution, however, partially due to uncertainty around the economic impact of the tariff. The Fed is expected to keep the rates stable in its upcoming meeting later in March.
The Fed raised interest rates to its highest level in two decades to subdue inflation. It started cutting its benchmark rate in 2024 as the inflation rate reached its target of 2%. However, inflation remains just above the target and tariffs threatening the price increase that can promote inflation.
In the bond market, treasury yield sinks. The yield on a 10 -year Treasury fell on Monday (March 3, 2025) late 4.16% to 4.12%. This is rapidly below the previous month, when it was reaching 4.80%, as concerns about going into the US economy have increased.
Published – March 04, 2025 11:36 pm IST