Amid mounting economic fears in the United States and following President Trump's refusal to rule out a recession that investors fear could be brought on by his tough trade policies, U.S. equities plummeted Monday.
Tuesday saw a mix of European and Asian markets.
However, Bloomberg reports that U.S. shares were marginally higher in futures trade.
The Dow Jones Industrial Average concluded the day at 41,912, down 890 points, or 2.1%, after plunging almost 1,000 points in afternoon trading.
Beijing started imposing retaliatory tariffs on a variety of American agricultural exports, for which China is the biggest market, on Monday, intensifying the president's trade conflict with China. This includes a 10% tax on soybeans, pig, beef, and fruit, as well as a 15% tax on U.S. chicken, wheat, and corn.
In reaction to the White House's tariffs on Canadian goods, Ontario, the country's most populous province, announced Monday that it will impose a 25% levy on all electricity exports to the United States.
Adam Crisafulli, a market analyst at Vital Knowledge, posted a lunchtime report stating, "As investors continue to aggressively de-risk and psychology continues to worsen more, stocks are back in the negative." The same factors that have been affecting sentiment since the middle of February are responsible for the weakness: worries about slowing GDP, Trump's damaging pro-tariff program (combined with White House officials' high threshold for economic and financial pain), and rising valuations.
Already in correction mode, the Nasdaq is pummeled. Read more...