Market Tensions on the Rise: Wall Street Reacts to Tariff Threats

The S&P 500 saw minor losses in Tuesday's session as investors awaited clarity on U.S. trade policies, following President Trump’s new tariff threats. Despite previous volatility, markets held close to all-time highs. Skepticism remains as traders anticipate second-quarter earnings and further headlines on tariffs.

Wall Street experienced a somewhat muted session on Tuesday, with the S&P 500 ending slightly down as investors absorbed President Trump's latest tariff threats. The market's cautious stance follows Monday's steep sell-off prompted by new tariff warnings, involving major trade players like Japan and South Korea.

Trump announced significant tariffs on imported copper, with potential levies looming over industries such as semiconductors and pharmaceuticals. Despite the uncertainty, the market upheld its proximity to all-time highs, reflecting investor resilience amid a backdrop of upcoming earnings reports and recent policy developments.

The spotlight remains on the market as the Federal Reserve prepares to release its June rate-setting meeting minutes, expected to shed light on future rate cuts. Sector-wise, energy stocks led gains, while small-cap stocks outperformed big players, reflecting investor caution amid global trade tensions.

(With inputs from agencies.)