Following steep declines on Monday, U.S. equities continued to lose ground on Tuesday. President Donald Trump’s decision to double tariffs on Canadian metal imports has fueled fears of an economic recession. Despite the bearish trend, U.S. Treasury yields climbed, accompanied by a rise in oil prices.
Investors were unsettled by Trump’s refusal to rule out a recession due to his trade policies. Adding to market jitters, small-business confidence dropped for the third consecutive month in February. Analysts like Phil Blancato from Osaic Wealth highlight a slowdown in consumer spending as companies forecast softer financial performances.
With hopes pinned on clarity around tariffs by April, market participants also await February’s U.S. consumer price index readings for inflation data. As indices like S&P 500 and Nasdaq faced notable declines, attention turned to fluctuating currencies and a struggling Canadian dollar against the surging U.S. dollar. Commodities such as oil and gold saw gains amid global economic uncertainty.
(With inputs from agencies.)
