The U.S. stock market faced losses on Tuesday as uncertainty surrounding global trade deals persisted. The Dow Jones Industrial Average dropped nearly 400 points, while the S&P 500 and Nasdaq also experienced declines. President Donald Trump’s unclear remarks on trade deals during a meeting with Canadian Prime Minister Mark Carney dampened hopes for swift progress on tariffs.
Trump’s statement contradicted earlier comments from Treasury Secretary Scott Bessent, who had indicated that the U.S. was close to finalizing deals with major trading partners. Investors are also closely monitoring the Federal Reserve’s two-day policy meeting, which began on Tuesday. The central bank is expected to maintain current interest rates, despite external pressure to lower them.
Economists believe the Fed will wait for clearer insight into key economic factors before making any changes.
U.S. trade deal ambiguity impacts stocks
In other market news, JPMorgan downgraded shares of fast-casual salad chain Sweetgreen to a neutral rating, citing concerns about softening consumer demand amid a weakening macroeconomic backdrop.
Shares of Sweetgreen have fallen 39% this year, and the company is expected to remain cash flow negative through the fiscal year ending in 2030. Henry Allen, a macro strategist at Deutsche Bank, compared the current market environment to that of last summer, when data deteriorated sharply and investors feared a downturn. However, he noted that the market’s current stability might help prevent an economic recession.
Meanwhile, Diamondback CEO Travis Stice warned that U.S. onshore oil production has likely peaked and will begin to decline due to the recent drop in crude prices. U.S. crude oil prices rose more than 3% on Tuesday to $59.26 per barrel, but prices remain down about 17% this year, impacted by President Trump’s tariffs and OPEC+ production increases. As the market continues to navigate uncertain economic conditions, investors will be closely watching for any developments in trade negotiations and the Federal Reserve’s policy decisions.