US stocks jump – then dive, as confusion over Trump tariffs reigns
The big question remains centred on how long the US president will keep his stiff tariffs on imports, which would raise prices for Americans
US stocks dove on Tuesday following another stunning reversal, with Wall Street veering from a huge gain at the opening of trading to more losses at the close, because investors still have no idea what to make of US President Donald Trump’s trade war, which is scheduled to kick into a higher gear after midnight.
After blasting to an early gain of 4.1 per cent, which would have marked its best day in years, the S&P 500 quickly lost all of it. It then careered to a loss of 3 per cent before paring its drop to 1.6 per cent.
That left the index, which sits at the heart of many investors’ 401(k) accounts, nearly 19 per cent below its record set in February.
The Dow Jones Industrial Average lost 320 points, or 0.8 per cent, after erasing an earlier surge of 1,460 points, while the Nasdaq composite dropped 2.1 per cent.
The shocking swings followed rallies for stocks globally earlier in the day, with indexes up 6 per cent in Tokyo, 2.5 per cent in Paris and 1.6 per cent in Shanghai. But even after those jumps, analysts had been warning to expect more swings up and down for financial markets not just in the days ahead but also the hours.
The big question remains centred on how long Trump will keep his stiff tariffs on other countries, which would raise prices for US shoppers and slow the economy.