US stocks slid on Tuesday as investors weighed Canada and China's response to President Donald Trump's delivery of new tariffs amid nerves over the prospect of a deepening trade war.
The Dow Jones Industrial Average (^DJI) fell about 1%, while the benchmark S&P 500 (^GSPC) dropped 0.8%. The tech-heavy Nasdaq Composite (^IXIC) shed around 0.9%, as all three indexes took a leg lower to extend their recent sell-off.
Rising fears of a full-on trade war drove Monday's sell-off after the president said there was "no room left" for Canada or Mexico to strike a deal to mitigate promised tariffs.
Stocks are retreating as markets assess the likely impact of Trump's broad tariffs on America’s top trading partners. The measures — fresh 25% tariffs on Canada and Mexico, and a doubling in China duties to 20% — were signed into effect at midnight ET on Tuesday.
5,754.68
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(-1.62%)
As of 10:10:16 AM EST. Market Open.
^GSPC ^DJI ^IXIC
Canada hit back with a sweeping package of immediate tariffs on US imports, while China retaliated with additional 15% duties on US farm products such as chicken and pork, to come on March 10. Many saw Beijing's response as less aggressive than feared, leaving room for negotiation with Trump.
Target (TGT) warned that tariffs will put pressure on first quarter profit as it delivered an earnings beat before the bell. The retail giant's stock was little changed in early trading. Meanwhile, its sector peer Best Buy (BBY) put out a muted annual sales forecast alongside its own quarterly beat. The additional sign of consumer caution helped send its shares lower.
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