Market Jitters: Impact of Trump's Tariff Plans Shakes Wall Street

Wall Street's major indexes fell as investors worry about the economic impact of President Trump's proposed tariffs. The tariffs could lead to higher inflation and reduced corporate earnings. The uncertainty has led to a significant downturn in the markets, affecting key sectors like technology and consumer discretionary.

Wall Street's major indexes saw a noticeable decline on Wednesday as investors expressed concerns over the potential ramifications of President Donald Trump's sweeping tariff proposals on global economic conditions. The details of these tariffs, termed "Liberation Day" tariffs, are still being finalized and are expected to be unveiled during an announcement at the White House Rose Garden.

Trump's proposed tariffs aim to balance the U.S.'s lower tariff rates with those of other nations, with suggestions circulating about a possible 20% universal tariff. This uncertainty has significantly impacted the confidence of investors, who have been distanced by the unclear specifics, resulting in reduced investments in the U.S according to Chris Beauchamp, IG Group's chief market analyst.

The market's downturn was reflected in drops across key indices such as the Dow Jones, S&P 500, and Nasdaq. All S&P 500 sub-sectors were in negative territory, especially consumer discretionary, affected by Tesla's stock drop due to poor quarterly results. Other tech stocks and companies like Trump's Media & Technology Group also experienced substantial declines amid rising concerns over economic input and inflation driven by potential tariffs.

(With inputs from agencies.)