US Stocks Close Lower Over Tariff Uncertainty, Slowing Economy

NEW YORK, March 12 (Bernama-Xinhua) -- US stocks extended their losses on Tuesday, with the S&P 500 edging closer to correction territory as trade tensions and weakening corporate outlooks fuelled investor unease, reported Xinhua.

The Dow Jones Industrial Average lost 478.23 points, or 1.14 per cent, closing at 41,433.48. The S&P 500 dropped 42.49 points, or 0.75 per cent, to 5,572.07, nearing a 10 per cent pullback from its February peak. The Nasdaq Composite dipped 32.22 points, or 0.18 per cent, to 17,436.1 after bouncing up and down for much of the session.

All 11 primary S&P 500 sectors finished in negative territory, with industrials and consumer staples leading the declines, down 1.54 per cent and 1.18 per cent, respectively. Consumer discretionary stocks fell the least, slipping 0.26 per cent.

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Trade policy uncertainties remained a focal point for investors after US President Donald Trump announced on Truth Social that tariffs on Canadian steel and aluminum would double to 50 per cent starting Wednesday, citing Ontario's decision to impose a 25 per cent tariff on electricity exports to the United States.

However, later on Tuesday, Ontario Premier Doug Ford announced a suspension of the extra electricity charges, and reports indicated that the United States had agreed to further negotiations.

Markets remain wary of escalating trade tensions, with concerns that Trump's aggressive tariff policies could disrupt global supply chains, squeeze corporate profits, and fuel inflation, potentially slowing economic growth. The unpredictability of trade measures has added to market anxiety.

"We are in a situation where the pendulum has shifted and fear has taken over," said Adam Sarhan, founder of 50 Park Investments. "A lot of this has to do with the 'Trump trade' being unwound, but also concerns about growth going forward, and also the R-word, which is recession."

Alongside the Trump administration's unpredictable tariff decisions, recent remarks from officials have further unsettled investors, heightening concerns about the economy's trajectory. On Tuesday, Trump again appeared unperturbed by the stock market's recent slides. "Markets are going to go up and they're going to go down but, you know what, we have to rebuild our country," he said when asked about the stock market, according to the White House pool report.

The 10-year U.S. Treasury yield, which had been declining in recent weeks amid rising concerns about the economy, edged higher on Tuesday. It stood at 4.28 per cent as of 4:30 pm Eastern Daylight Time, up from 4.21 per cent at Monday's close and rebounding from an intraday low of 4.15 per cent.

Although Tuesday's economic data calendar was relatively light, markets remain on edge ahead of the key consumer price index (CPI) report set for release Wednesday morning. 

--BERNAMA-XINHUA