Dow tumbles 500 points as new Trump tariffs rekindle market rout: Live updates

The Dow Jones Industrial Average fell Tuesday after President Donald Trump placed additional tariffs on Canadian steel and aluminum coming into the U.S.

The 30-stock average lost 565 points, or 1.4%, while the S&P 500 dropped 1%. The Nasdaq Composite slipped 0.6%.

In a Truth Social post, Trump said steel and aluminum duties would double to 50% from 25%, effective Wednesday. This is the latest in a series of escalating trade policy moves that have stoked fears of a U.S. economic recession. The White House has placed tariffs on Canadian, Mexican and Chinese imports, leading to steep losses in equities.

The Nasdaq Composite has tumbled into correction territory, down more than 10% from a record set in late 2024, while the S&P 500 traded around 9% below its all-time high set in February.

On Monday, the Nasdaq saw its worst day since September 2022, dropping 4%. The 30-stock Dow, which lost nearly 900 points, closed below its 200-day moving average for the first time since Nov. 1, 2023.

The pullback led Citigroup to lower its rating on U.S. stocks to neutral from overweight, pointing to a “pause in U.S. exceptionalism” as the reason. Adding to worries around the economy was the latest guidance from Delta Air Lines. The company slashed its earnings outlook due to weaker U.S. demand, pushing the stock down more than 8%.

“There’s clearly a tolerance for pain on the part of the administration in pursuit of trade goals that are not necessarily entirely economic in nature,” said Ross Mayfield, Baird investment strategist. “At this point I’m still in the camp that we’re not on the doorstep of a recession, but maybe a slowdown or growth scare. Non-recession sell-offs tend to be shorter and milder than the recessionary ones.”

When asked about the possibility of a recession, Trump said during a Fox News interview that aired on Sunday that the economy was going through “a period of transition.” The remarks arrived after Treasury Secretary Scott Bessent told CNBC on Friday that there could be a “detox period” for the economy as the Trump administration slashes federal spending.

Investors are eagerly anticipating the release of February’s consumer price index and producer price index readings, respectively due on Wednesday and Thursday morning. Both are important indicators for the health of the U.S. economy.

“It’ll be really important that we don’t see an upside surprise on CPI because at this point, the Fed does have plenty of dry powder to step in to cut rates and try to boost demand if the economy were to meaningfully slow,” Mayfield added. “But they can only really do that if they feel that inflation expectations and inflation are well anchored.”