Market Jitters: Tariff Tensions Rock Wall Street

Wall Street indexes dropped as President Trump's new tariffs on Canada heightened fears of an economic slowdown. Stocks, including those of Delta and American Airlines, saw declines amid political and economic uncertainty. Analysts warn these trade tensions could fuel inflation and impede economic growth.

Wall Street's primary indexes experienced a decline during Tuesday's volatile trading session following President Trump's announcement of new tariffs on Canadian imports. The move adds to investor concerns that these trade policies could precipitate an economic downturn.

Analysts caution that the escalating tariff dispute with major trading partners, including Canada, Mexico, and China, might drive inflationary pressures and potentially hinder economic growth. This backdrop led to the largest one-day drop in the S&P 500 since December 18, erasing $4 trillion from its recent peak, while the Nasdaq confirmed a 10% correction.

The Dow Jones Industrial Average dropped 427.33 points, the S&P 500 shed 34.54 points, and the Nasdaq Composite lost 33.70 points. All 11 sectors of the S&P 500 fell, notably cyclical stocks like industrials and financials.

(With inputs from agencies.)