U.S. benchmark equity indexes experienced a decline during intraday trading as President Donald Trump announced plans to double the proposed tariffs on steel and aluminum imports from Canada. The Dow Jones Industrial Average saw a significant drop of 1.7%, settling at 41,196.6 by midday Tuesday. Concurrently, the S&P 500 fell by 1.5% to 5,533.7, and the Nasdaq Composite reported a decrease of 1.2% to 17,261.2.
Notably, all sectors found themselves in negative territory, with industrials and health care leading the declines. Trump's recent strategy to raise metal tariffs on Canadian imports to 50% is slated to start on Wednesday. This decision was triggered by Ontario's imposition of a 25% duty on electricity exported to the U.S.
Last week, the administration took further action by issuing temporary tariff exemptions for various goods entering the U.S. from Mexico and Canada. Additionally, the White House has doubled the tariffs on imports from China, which in turn has announced its own retaliatory measures against U.S. goods. In bond markets, U.S.
Treasury yields presented a mixed picture on Tuesday. The yield on the 10-year note progressed by 2.1 basis points, reaching 4.24%, whereas the two-year yield slipped by one basis point to 3.89%. In economic indicators, small business optimism within the U.S. showed a more significant decline than analysts had anticipated for the month of February.
This decline has resulted in the second-highest level of uncertainty reported on Main Street, according to a survey conducted by the National Federation of Independent Business. TD Economics commented, "With trade conflicts reigniting in March, the level of uncertainty has the potential to rise even higher.
This would weigh on overall small business confidence, likely leading to weaker investment and hiring decisions." Furthermore, job openings in the U.S. rose to 7.74 million by the end of January, up from 7.51 million the previous month. This figure surpassed the consensus estimate of 7.6 million, as reported by the Bureau of Labor Statistics' job openings and labor turnover survey. In commodity markets, West Texas Intermediate crude oil noted a rise of 0.3%, priced at $66.24 per barrel during intraday trading.
However, analysts at D.A. Davidson highlighted that gains were limited primarily due to ongoing tariff concerns. Turning to corporate updates, Verizon Communications' ($VZ) subscriber growth projections for the first quarter appear to be "probably soft," as expressed by Chief Revenue Officer Frank Boulben.
This news contributed to shares dropping by 7.8%, marking the steepest decline within the Dow and among the most considerable losses on the S&P 500. Delta Air Lines ($DAL) also saw shares decrease by 8.3%, ranking among the worst performers on the S&P 500. The airline revised its financial outlook for the first quarter downward on Monday. Conversely, Southwest Airlines ($LUV) emerged as the top performer on the S&P 500 during Tuesday's trading session, marking an increase of 8.6%.
This uptick came as the company lowered its first-quarter outlook for a crucial revenue metric while announcing a policy change that will introduce fees for certain checked bags. In technological advancements, GE Vernova's ($GEV) power conversion and storage sector has entered into a memorandum of understanding with PyroGenesis to explore the possibilities for a multiyear collaboration.
Following this announcement, shares of GE Vernova enjoyed a rise of 4.9%, making it one of the top gainers on the S&P 500. Lastly, precious metals showed positive movement, with gold prices climbing by 0.8% to $2,922.40 per troy ounce and silver rising by 1.8% to $33.12 per ounce. Overall, the combination of tariff announcements and economic indicators continues to shape the landscape for U.S.
markets and investor sentiment..