In the latest trading session, US equity indexes experienced further declines, extending the steep drops witnessed in the previous session. The Nasdaq Composite fell by 0.4%, settling at 17,395.1, while the S&P 500 experienced a 0.9% decrease, reaching 5,567.2. The Dow Jones Industrial Average, on the other hand, traded 1.2% lower, landing at 41,390.6.
A concerning pattern emerged as all sectors faced losses, with energy, healthcare, and industrials among the hardest hit. The market downturn is exacerbated by fears that the US economy may be entering a recession. This concern was fueled by recent actions taken by the Trump administration to raise trade barriers significantly.
Notably, President Donald Trump announced plans to double tariffs on steel and aluminum imports from Canada to 50%, with the changes set to take effect on Wednesday morning. This move comes as a direct response to Ontario Premier Doug Ford's decision to impose a 25% surcharge on all electricity exported to the US. In an announcement made on Truth Social, President Trump expressed, "This will go into effect tomorrow morning, March 12th.
Also, Canada must immediately drop their anti-American farmer tariff of 250% to 390% on various US dairy products, which has long been considered outrageous." Trump further noted that if Canada does not eliminate "other egregious, long time tariffs," he would significantly raise tariffs on automobiles imported from Canada. On the economic front, reports from the Bureau of Labor Statistics indicated that job openings increased to 7.740 million in January.
This figure surpassed the 7.6 million openings anticipated in a survey conducted by Bloomberg and marked an increase from the 7.508 million openings reported in December. In the bond market, most US Treasury yields rose during intraday trading. The 10-year yield increased by 3.1 basis points, reaching 4.24%, while the two-year yield remained stable at 3.90%, following the declines observed in the previous trading session.
The markets continue to react to the evolving economic conditions and trade policies, underscoring a period of uncertainty for investors and policymakers alike..