Trade Tensions Shake Wall Street as Nasdaq Nears Correction

Wall Street's main indexes dropped as the Nasdaq headed towards a correction amid growing trade tensions. Investors feared the U.S. economy might suffer due to escalating tariffs, impacting key sectors. Major banks and businesses across industries saw declines, while safe-haven assets like gold gained.

Wall Street experienced a downturn on Tuesday, with primary indexes facing declines as the tech-focused Nasdaq Composite approached a correction status, attributed to investors' concerns about the potential economic fallout from escalating trade conflicts.

The Nasdaq Composite index continued its downward trajectory, signaling a correction as it recorded a 10% drop from its December peak. Financials were among the hardest hit, leading to a 3.6% decline in the S&P 500 sectoral performance.

Major U.S. banks, including Citigroup and JPMorgan Chase & Co, saw significant drops in their shares, exacerbating overall market volatility. Investor concerns were fueled by the implementation of U.S. tariffs on Mexico, Canada, and China, prompting retaliatory measures that threaten to disrupt substantial international trade.

(With inputs from agencies.)