The stock market faced another turbulent day on Tuesday, with major indexes taking a nosedive as investors struggled to make sense of the ongoing trade battle between the U.S. and Canada. The Dow Jones Industrial Average dropped by 478 points, closing at 41,433, while the S&P 500 and Nasdaq Composite also ended the day in the red.
The big question on everyone’s mind? Where will the trade war go next? Investors are left guessing as tariff policies continue to shift. Art Hogan, chief market strategist at B. Riley Wealth, put it simply: “Until we get some clarity on trade and tariffs, this uncertainty will keep dragging markets down.”
Big Names Take a Hit
Among the hardest-hit stocks was Verizon, which plunged 6.6% after warning about weaker-than-expected subscriber growth. The market’s instability also affected energy and manufacturing sectors, which felt the heat from President Trump’s decision to increase tariffs on Canadian steel and aluminum to 50%.
Interestingly, Ontario’s Premier reversed a controversial 25% electricity surcharge on U.S. exports just a day after announcing it. In response, Trump walked back some of the tariff hikes—but the damage to investor confidence had already been done.
The Bigger Picture: What’s Next?
With Trump hinting at even steeper tariffs on April 2 if Canada doesn’t lift its restrictions on U.S. dairy products, the market remains on edge. Investors worry that the uncertainty could drag on for weeks, if not months, making it harder for businesses to plan ahead.
As Dan Greenhaus, chief strategist at Solus Alternative Asset Management, pointed out, market declines of 10% or more happen more often than people realize. However, with stocks coming off a six-month rally, this latest dip feels more concerning.
More Questions Than Answers
Financial giants like Citigroup and JPMorgan Chase have already scaled back their optimistic outlooks for 2025, adding to the sense of unease. Just a day earlier, Trump dodged questions about a possible recession, telling Fox News, “I hate to predict things like that.”
For now, all eyes are on April 2, the next big deadline in this trade dispute. Investors will be waiting to see whether tensions cool down—or if another wave of tariffs will send the markets into another tailspin.
