Wall Street Drops on Tariff Worries and Profit-Taking; Dow Sheds Over 400 Points
The Dow tumbled 422.17 points (0.9%) to 44,406.36, the Nasdaq slumped 188.59 points (0.9%) to 20,412.52 and the S&P 500 slid 49.37 points (0.8%) to 6,229.98.
Wall Street's early weakness reflects profit-taking after recent gains, with stocks previously rallying on strong jobs data. Investor concerns grew after Trump posted letters about new tariffs, sparking fresh selling pressure. Imports from several countries now face steep duties, escalating trade tensions globally. Analysts warn that Trump's shifting policies and threats of higher tariffs are unsettling markets.
Computer hardware stocks moved substantially downwards , with the NYSE Arca Computer Hardware Index plunging by 2.2% after ending the previous session at its best closing level in over four months. Oil service stocks were significantly weak , as reflected by the 2.0% slump by the Philadelphia Oil Service Index. Airline, semiconductor and steel stocks too were considerably weak while gold stocks bucked the downtrend amid a slight increase by the price of the precious metal.
Asia-Pacific stocks turned in a mixed performance. Japan's Nikkei 225 Index slid by 0.6% while South Korea's Kospi inched up by 0.2%. The major European markets also ended the day mixed while the U.K.'s FTSE 100 Index dipped by 0.2%, the French CAC 40 Index climbed by 0.4% and the German DAX Index jumped by 1.2%.
In the bond market, treasuries extended the downward trend seen over the past several sessions. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, rose 4.7 basis points to 4.39%.
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