Donald Trump IS causing a LOT of people to lose money…..
The ‘Make America Great Again ‘ guy?….
Ain’t right now…..
Yahoo Finance.…2:00PM EST
US markets eliminated all of their post-election gains as stocks deepened their sell-off with fresh tariffs on Canada, Mexico, and China now officially in effect.
The Dow Jones Industrial Average (^DJI) fell about 1.5%, while the benchmark S&P 500 (^GSPC) dropped 1.6%. The Nasdaq Composite (^IXIC) also shed around 1.5%, as all three indexes took another big leg lower.
Notably, the Nasdaq is set to close down at least 10% from its record closing high on Dec. 16, which would mark correction territory for the tech-heavy index.
Rising fears of a full-on trade war drove Monday’s sell-off after the president said there was “no room left” for Canada or Mexico to strike a deal to mitigate promised tariffs.
Stocks are retreating as markets assess the likely impact of Trump’s broad tariffs on America’s top trading partners. The measures — fresh 25% tariffs on Canada and Mexico, and a doubling in China duties to 20% — were signed into effect at midnight ET on Tuesday….
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Recent data has highlighted these growth concerns, marking the return of “bad news for the economy is bad news for stocks.” On Monday, ISM Manufacturing prices paid came in at their highest since June 2022 while new orders fell into contraction, suggesting a “stagflationary” environment in which growth slows but price increases remain elevated.
Meanwhile, confidence plummeted in February, notching its biggest monthly decline in nearly four years as 12-month inflation expectations jumped and recession fears escalated. The latest consumer sentiment reading also highlighted greater concerns around tariffs and the impact those and other policies could have on inflation and the broader economy….
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US Treasury Secretary Scott Bessent argued that a market sell-off in response to new tariffs would be temporary, Bloomberg reports, though he acknowledged there may be a transition period as new duties on Canada, Mexico, and China take effect.
The Treasury Secretary’s comments come after stocks plummeted Monday in response to the tariffs. On Tuesday morning, futures for Dow Jones Industrial Average futures (YM=F) fell 0.3%, while S&P 500 futures (ES=F) dropped 0.8%. Contracts on the tech-heavy Nasdaq 100 (NQ=F) shed nearly 1%….
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The risk to global growth from Trump’s tariffs is rattling bond investors, who appear increasingly convinced that the president is no longer just making threats as a precursor to a deal.
Traders also ramped up bets on the Federal Reserve making more interest-rate cuts than previously expected.
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