The announcement of doubled tariffs led initially to the stock market falling, but later recovered somewhat. However, at closing, the S&P 500 index was down 0.8 percent and the Dow Jones industrial index fell 1.1 percent. The Nasdaq composite index – which had its worst day since September 2022 yesterday – lost 0.2 percent on Tuesday.
Yesterday's price drop followed market concerns about a possible recession in the American economy. On Tuesday, US President Donald Trump tried to downplay the fears that have arisen around his handling of the economy. For example, he said he does not see a forthcoming recession, after refusing to rule out the possibility of the country slipping into recession this year over the weekend.
On Tuesday, it also seemed like attempts were being made to cool down the heated atmosphere between the US and Canada, where the US has threatened high tariffs and Canada has responded with a high fee on electricity prices for Americans. The parties are set to meet in the coming days.
Among the stocks that went against the trend was the airline Southwest Airlines, which increased 8.3 percent after announcing that it would charge for bags that passengers want to bring on board. Also, for example, semiconductor giant Nvidia increased 1.7 percent.
Electric car manufacturer Tesla, which fell sharply yesterday, rose 3.8 percent.
Software company Oracle, on the other hand, fell 3.1 percent after reporting weaker quarterly figures than expected. Telecom giant Verizon lost 6.6 percent.
