The major US stock market indexes are poised for a downturn on Tuesday as both Canada and China have implemented tariffs on American products, a direct response to trade duties enacted by the previous administration. This geopolitical tension is contributing to the volatility in the market. The Dow Jones Industrial Average registered a significant decrease of 1.6%, landing at 42,483.4 points.
Similarly, the S&P 500 also faced declines, dropping 1.5% to 5,763.3 points. The Nasdaq Composite, while experiencing a lesser impact, saw a reduction of 0.5%, closing at 18,252.8 points. It is notable that the technology sector managed to achieve gains during this turbulent period; however, financial stocks suffered the most substantial losses. One of the most noteworthy developments came from Best Buy, represented by the ticker symbol $BBY.
The company's stock was the poorest performer on the S&P 500, plummeting by 11% after Chief Executive Corie Barry highlighted the potential for price increases due to new tariffs. Despite exceeding analyst expectations for its Q4 performance, Best Buy's annual earnings forecast fell short of average projections on Wall Street, raising concerns among investors. Conversely, Super Micro Computer, indicated by its ticker symbol $SMCI, experienced a resurgence following a decline on Monday, with its shares soaring over 11% during today's trading session. In contrast, Walgreens Boots Alliance, trading under the ticker $WBA, emerged as one of the top performers on the S&P 500.
This positive development follows a report from the Wall Street Journal suggesting that the company is approaching a deal with private-equity firm Sycamore Partners to privatize for approximately $10 billion, generating optimism among shareholders. On the fixed income front, the 10-year US Treasury yield saw a slight increase of 0.05 basis points, reaching 4.2%, while the two-year Treasury yield experienced a slight decline, hovering around 4%.
Meanwhile, April West Texas Intermediate crude oil prices edged up by 0.1%, now priced at $68.41 per barrel. This movement in oil prices adds another layer to the complexities facing the financial markets during this period of heightened geopolitical tensions..