Major US stock indexes fell slightly on Tuesday after President Donald Trump announced new tariffs on steel and aluminum imports.
Shortly after the market opened, the S&P 500 immersed 0.31%, causing similar losses in the Asian market. The Dow Jones industrial average fell by 0.26%, while the high-tech Nasdaq fell by 0.48%.
Why is it important?
The stock market is highly sensitive to the development of trade policies, with investors closely monitoring potential economic impacts. The tariffs, which were imposed by the Trump administration on tariffs on steel and aluminum imports, rekindled concerns over trade tensions and reflected market volatility from previous tariff disputes.
Federal Reserve Chairman Jerome Powell will give his six-month testimony before Congress Tuesday. His words will be scrutinized for insight into the Fed’s attitude towards interest rates, particularly as concerns remain about inflation. The Fed is paying attention to future interest rate cuts. This could affect market volatility in the coming months.
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What do you know
On Tuesday, the Asian market reflected investors’ uncertainty, with Hong Kong’s Hangsen index falling 1.06% to 21,294.86, and Shanghai composite slipping to 0.12% to 3,318.06. The Japanese market remained closed due to national holidays. In contrast, Korea’s Kospi scored 2,539.05 to 0.71%, while Australia’s S&P/ASX 200 had little change.
In early European trades, French CAC 40 increased by 0.2%, German DAX increased by 0.3%, and UK FTSE 100 remained flat.
The bond market has shown minor movements, with the Treasury yields rising from 4.50% to 4.53% in 2010. The two-year financial yield, which closely reflects expectations for short-term interest rates, was stable at 4.29%.
Oil prices were volatile, with benchmark US crude rising from $1.21 per barrel to $73.53, while Brent crude rose from $1.33 to $77.20. The US dollar strengthened to $152.35 in the currency market against the Japanese yen, while the euro remained stable at $1.03.
Monday’s tariff announcement follows plans to put 25% tariffs on goods from Canada and Mexico and 10% on Chinese products. Trump supported the former, but pushed China’s tariffs in which Beijing retaliated.
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What people are saying
Vishnu Varathan, head of macro research at Mizuho, told The Associated Press: Nevertheless, the reality is that US-China trade tensions are set to increase structurally, even if the negotiated compromise is the final game of Trump 2.0 tariffs. ”
What will happen next
Powell is scheduled to testify to the House of Representatives on Tuesday before the Senate.
Meanwhile, the corporate revenue season will continue, with key reports from key technology and consumer goods companies likely to affect market direction.
This article contains reports from the Associated Press.
Updated 2/11/25, 10:09 AM ET: This article has been updated with additional information.
