NEW YORK: Wall Street’s major indexes were mostly down early Tuesday as they struggled to rebound from steep declines triggered by worries that US President Donald Trump’s tariffs could tip the economy into a downturn.
Investors have been concerned Trump’s trade policies could trigger a recession in the world’s biggest economy, with the US leader himself refusing to rule one out after imposing levies on Canada, Mexico and China.
Around 15 minutes into trading, the tech-focused Nasdaq Composite Index, which saw its worst day since 2022 on Monday, picked up 0.4 percent to 17,533.51.
The broad-based S&P 500 Index retreated 0.1 percent to 5,607.05, however, and the Dow Jones Industrial Average slid 0.6 percent to 41,672.53.
“As of now, things don’t look much better for stocks following a period in which things have gotten progressively worse,” Patrick O’Hare, an analyst at Briefing.com, wrote in a note.
Nasdaq falls over 3% to six-month low on growth concerns
Sam Stovall of CFRA added that a “catalyst” was needed before stock prices could bounce.
One possibility is consumer inflation data due Wednesday, Stovall said. If inflation were seen to be cooling sustainably, this could bring some optimism to markets amid expectations that the Federal Reserve might cut interest rates further.
Adding to concerns around the US economy was new guidance from major airlines, with Delta Air Lines recently pulling back on its earnings outlook on weaker demand.
Delta shares were down more than 3.3 percent Tuesday morning.
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