Wall Street Woes: Tech Turmoil and Tariff Tensions

U.S. stock indexes fell as investors examined economic data and anticipated tariff announcements from the Trump administration. The market experienced economic disruption from tariffs and tech firm investments, contributing to a challenging first quarter. Investors turned to bonds and gold amid concerns over tariffs affecting economic growth.

On Tuesday, U.S. stock indexes witnessed a decline as investors analyzed economic indicators and prepared for significant tariff announcements from President Trump's administration. Manufacturing contracted in March, with inflation at the factory gate reaching its highest in nearly three years, largely driven by rising tariff anxieties.

A report showed job openings dropped to 7.568 million in February. President Trump is set to reveal "reciprocal tariffs" on April 2, affecting all countries, with details yet to be specified. The prospect of economic upheaval from tariffs, combined with aggressive AI investments by tech firms, left Wall Street shaken throughout the first quarter.

As concerns grew over tariffs slowing economic growth and causing inflation, investors moved to U.S. government bonds and gold, shedding domestic equities. Trump's administration already imposed tariffs on aluminum, steel, and goods from China. Goldman Sachs increased the odds of a U.S. recession to 35%, anticipating further interest rate cuts this year.

(With inputs from agencies.)