Wall Street’s Losing Streak Deepens as Trump’s tarifs kick in

Financial news is displayed as People work on the floor at the new york stock exchange in New York, Tuesday, March 4, 2025. (AP Photo/Seth Wenig) | Photo Credit: Seth Wenig

Stocks tumbled on Wall Street Tuesday (March 4, 2025) as a trade war between the US and its key trading partners Escalated, wiping out all the Gains for the Gains for the Gains for the Gains for the Gains for the Gains for the Gains for the Gains.

The tariffs between the US, China, Canada, and Mexico Helped Extend a Recent Slump for Us Stocks that was prompted by signs of weakness in the economy.

The S & P 500 Fell 1.7%, with every sector in the Benchmark Index Losing Ground. The down Dow Jones Industrial Average Shed 722 Points, or 1.7%, as of 11:03 AM Eastern Time.

Also read | World Shares Decline as Trump’s tariffs on Canada, Mexico and China take effect

The Nasdaq Composite Fell 1.5%. The tech-havy index is on track to posting a 10% decline from its most recent closing high, which is what the market considers a correction. Technology Stocks Helped Drive Much of the Market’s Gains in 2024, but have been losing ground and acting as a heavy weight so far in 2025.

Markets in Europe Fell Sharply While Stocks in Asia Saw More Modest Declines.

The Drops Follow a Steep Sell-off Monday (March 3, 2025). Altoegeter, the decline has wiped out all of the markets’ Gains Since President Donald Trump’s Election in November. That rally had ben built larger on hopes for policies from Mr. Trump that would strengthen the US economy and businesses. Worries about tariffs raising consumer pristers and reigniting inflation have been weighing on bot the economy and wall street.

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Imports from canada and mexico are to be taxed at 25%, with canadian energy products subject to 10% important duties. The 10% tariff that Mr. Trump Placed on Chinese Imports in February Was Doubled to 20%.

Retaliations were Swift.

China Responded to New Us Tariffs by Announcing it will IMPOSE Additional Tarifs of Up to 15% on Imports of Key Us Farm Products, Including Chicken, PORK, Soy and Beef, Beef, and EXPANDEDEDDED CONTOROLS OONOS Business with Key Us Companies. Canada plans on Slapping tariffs on more than $ 100 billion of American Goods over the course of 21 days. Mexico also plans tarifs on goods imported from the US

Also read | Low us policy visibility equals big economic Trouble

The tariffs are prompting warnings from retailers, Including Target and Best Buy, as they report their latest financial results. Target Slumped 5.4% Despite Beating Wall Street’s Earnings Forecasts. There will be “meaningful pressure” on its rights to start the year because of tarifs and other costs.

Best Buy Plunged 14.2% After Giving Investors A Weaker-Tha-Expected Earnings Forecast and Warning About Tariff Impacts.

“International Trade is critically important to our business and industry,” said best buy Ceo Corie Barry.

Explained | What will be the impact of Trump’s Trade War?

MS. Barry Said China and Mexico are the top two sources for products that best buy sells and it also also expects vendors to pass along tariff costs, which will make price increases for american consucers.

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The warnings are coming in as companies close out their latest round of earnings reports. Companies in the S & P 500 Reported Broad Earnings Growth of 18% in the Fourth Quarter. Wall street has already trimmed expectations for the current Quarter to 7% Growth from Just Over Forecasts of 11% at the beginning of the year.

Worries about Profits Follow a Series of Economic Reports with Worrisome Signals That Include Us Househlds bycoming More Pessimistic About Inflation and Mulling Back on Spending. Consumer Spending has essentially Driven Us Economic Growth in the face of high interest rates.

Also read | China slaps extra tarifs of up to 15% on important of major us farm expenses

Wall street has been hoping that the federal reserve will continue lowering interested interests in 2025. The Central Bank has signalled more caution, thought, partly becase of uncerty surcitey surround surface of Tarifs. The fed is expected to hold rates steady at its upcoming meeting laater in March.

The fed raised interest rates to their highhest level in two decades in order to tame inflation. It started cutting its benchmark rate in 2024 as the rate of inflation moved closer to its target of 2%. But, Inflation Remains Stubbornly just about Above that target and tariffs threaten price Increases that Cold Fuel Inflation.

In the bond market, treasury yields sank. The yield on the 10-yar treasury fell to 4.12% from 4.16% Late Monday (March 3, 2025). It’s down sharply from last month, when it was approaching 4.80%, as worms have grown about where the us economy is heading.