The Dow Jones Industrial Average fell nearly 400 points on Tuesday as uncertainty surrounding global trade deals weighed on markets. The S&P 500 and Nasdaq Composite also posted losses for the second consecutive day. President Donald Trump’s ambiguous remarks about trade agreements diminished hopes for imminent progress on tariffs.
During a meeting with Canadian Prime Minister Mark Carney, Trump retracted earlier assurances that trade deals were close to completion, stating, “We don’t have to sign deals.”
This stance conflicted with Treasury Secretary Scott Bessent’s comments earlier in the week. Bessent had testified to the House Appropriations Committee, emphasizing that most trade deficits were with 15 countries and that agreements could be reached soon. However, no official trade agreements have been announced.
Automakers experienced notable declines, with Stellantis shares dipping 1.8% after new car sales in Britain and Germany fell to their lowest levels in over two years. Tech giants also saw declines, contributing to the market’s overall weakness.
Dow declines amid trade concerns
The Federal Reserve began its two-day policy meeting on Tuesday, with the central bank expected to maintain current interest rates. Traders are keenly awaiting Fed Chair Jerome Powell’s comments on his economic outlook, particularly in light of ongoing trade tensions. JPMorgan downgraded shares of Sweetgreen to a neutral rating from overweight, citing softening demand amid a challenging macroeconomic environment.
Shares of Sweetgreen have already declined 39% this year. Merger and acquisition activities have slowed sharply, with April seeing the lowest number of global deals since February 2005. In the U.S., M&A transactions hit their lowest level since May 2009.
U.S. crude oil prices rose over 3% to $59.26 per barrel on Tuesday as OPEC+ continued to increase production, despite demand concerns stemming from tariffs. Among stocks making the biggest midday movements, Uber shares tumbled 13.4% following quarterly earnings that met analysts’ expectations but nevertheless disappointed investors. Meanwhile, Ford saw a 3.2% gain on stronger-than-expected first-quarter results, reversing an earlier decline.