Stock indexes close lower due to US tariff hike on Canadian steel and aluminum

From Nasdaq: 2025-03-11 18:42:22

Stock indexes closed lower on Tuesday, with the S&P 500, Dow Jones, and Nasdaq 100 hitting 5-3/4 month lows. News of Canada holding off on some retaliatory tariffs and Ukraine accepting US truce plans helped stocks recover in the afternoon. March futures for S&P and Nasdaq are down. Bitcoin rallied over +4% after Monday’s losses.

President Trump’s tariff increase on Canadian steel and aluminum affected stocks initially, but Ontario’s suspension of a surcharge on US electricity calmed markets. Strength in the labor market with JOLTS job openings rising supported stocks. Verizon and Delta Air Lines led telecommunication and travel stocks lower with profit warnings.

Market focus this week is on US economic reports, trade policies, and potential government shutdown. The chance of a -25 bp rate cut at the next FOMC meeting is at 4%. Overseas stocks settled mixed, with Euro Stoxx 50 falling and China’s Shanghai Composite rising. Interest rates rose, and European bond yields moved higher.

Tech stocks retreated, with chip stocks leading the decline. Teradyne forecasted lower Q2 revenue, while Oracle reported weaker Q3 revenue. Kohl’s, Ferguson Enterprises, and Magnificent Seven stocks were also down. Cybersecurity stocks rose after Elon Musk’s cyberattack claim. Southwest Airlines accelerated its share repurchase program.

Boeing led gainers in the Dow Jones after outperforming Airbus in aircraft deliveries. Earnings reports for 3/12 include Adobe, Crown Castle, SentinelOne, and UiPath. Elevance Health and ASML Holding NV also saw positive gains. The market remains volatile amidst ongoing trade tensions and economic uncertainties.



Read more at Nasdaq: Stocks Finish Lower on US Tariff Hike on Canadian Steel and Aluminum