On Tuesday, US benchmark equity indexes experienced a decline, attributed to President Donald Trump's decision to raise proposed tariffs on Canadian steel and aluminum goods. This increase comes in response to Ontario's implementation of a 25% duty on electricity sold to the United States. As a result, the Nasdaq Composite recorded a minor decrease of 0.2%, settling at 17,463.1, while the S&P 500 witnessed a more notable drop of 0.8%, ending at 5,572.1.
Meanwhile, the Dow Jones Industrial Average decreased by 1.1% to reach 41,433.5. This overall downturn was reflected across various sectors, with industrials suffering the most significant losses. In financial news, US Treasury yields observed an increase, with the 10-year rate climbing approximately 6.9 basis points to reach 4.3%, while the two-year rate rose by 5.7 basis points, reaching 4%. Furthermore, in the realm of commodities, April West Texas Intermediate crude oil prices fell by 1.6%, pricing at $65.99 per barrel on Tuesday. On the labor front, economic reports showed an increase in US job openings, rising to 7.7 million as of January 31, up from 7.5 million the previous month, as indicated by a survey from the Bureau of Labor Statistics regarding job openings and labor turnover. However, small business sentiment saw a decline in February amid increasing uncertainty, reported as the second-highest reading on record by the National Federation of Independent Business.
The survey highlighted a growing trepidation among small business owners, with experts at TD Economics noting, "With trade conflicts reigniting in March, the level of uncertainty has the potential to rise even higher. This would weigh on overall small business confidence and is likely to manifest itself in weaker investment and hiring decisions." In corporate developments, Southwest Airlines ($LUV) emerged as a standout performer on the S&P 500, with shares climbing by 8.4%.
Southwest's CEO, Bob Jordan, announced at an industry conference the airline's decision to cease its hedging policy against fuel price fluctuations, aiming to eliminate hedging premium payments. Meanwhile, GE Vernova's ($GEV) shares experienced a 5.2% uptick after its power conversion and storage unit entered into a memorandum of understanding with PyroGenesis to embark on a multi-year project focused on developing all-electric industrial tools meant for high-temperature processes. Conversely, Teradyne ($TER) faced a 17% decline in shares following its announcement that it had agreed to acquire the privately held Quantifi Photonics.
Kohl's ($KSS) experienced a notable drop of 24%, as the retail giant projected a grim outlook for 2025, citing growing uncertainty impacting consumer spending in the US economy. The department store chain anticipates full-year earnings to be between $0.10 and $0.60 per share, falling short of the $1.09 EPS forecasted by three analysts in a FactSet poll. On the commodities front, gold prices increased by 0.9%, trading at $2,925.20 per troy ounce, while silver prices rose by 2.7%, reaching $33.40 per troy ounce..