Wall Street went on another volatile ride Tuesday as a morning rally that saw the Dow Jones Industrial Average jump by more than 1,400 points fizzled out by the afternoon – giving up all its gains amid escalating trade tensions.
The blue-chip index soared 1,146 points after the opening bell on renewed optimism for a deal with trading partners before stiff tariffs kick in Wednesday.
The enthusiasm was buoyed by positive remarks from Treasury Secretary Scott Bessent, who hinted at openness to tariff negotiations, suggesting the administration could “end up with some good deals.”
US stocks took a jump on Tuesday morning after days of losses. APPresident Trump amplified the hopes by confirming discussions with South Korea’s leader and various other nations were ongoing.
Yet, the market’s confidence proved fleeting.
By late afternoon, the gains were replaced by sharp declines after the White House announced it would level an additional 50% tax on China — raising the total to 104% — because of retaliatory 34% tariffs by Beijing on US products.
The Dow ended the day down 320 points at 37,645. It has now lost nearly 5,000 points since Trump’s “Liberation Day” announcement at the White House last Wednesday.
The S&P 500 closed with a 1.6% loss, at 4,983, while the tech-heavy Nasdaq retreated by nearly 2.2%, to 15,268.
Earlier in the day, the Nasdaq had soared by more than 4%, blowing its biggest intraday gain since at least 1982. The S&P, meanwhile, crept into bear territory, finishing nearly 20% off its most recent high.
The Dow Jones Industrial Average and Nasdaq fell more than 300 points, while the S&P 500 finished below 5,000 for the first time in nearly a year. Mike Guillen/NY Post Design“I think the market is trying to find the bottom,” Dr. Sung Won Sohn, a professor of finance and economics at Loyola Marymount University in Los Angeles, told The Post.
“We will see a fair amount of fluctuation — up and down, up and down, up and down — depending on the news out of the White House.”
Investor sentiment notably soured after US Trade Representative Jamieson Greer clarified that President Trump would not grant exceptions to the administration’s latest global tariffs — neither to specific products nor individual companies.
Investor sentiment notably soured after US Trade Representative Jamieson Greer clarified that President Trump would not grant exceptions to the administration’s latest global tariffs. REUTERSThis stark announcement dashed hopes that had driven the morning’s bullish momentum.
Technology stocks, pivotal in recent market advances, bore the brunt of Tuesday’s reversal.
The persistent uncertainty over tariffs follows Monday’s similarly volatile trading session, characterized by fluctuating optimism and subsequent disappointment as initial hopes for tariff relief proved unfounded.
“There’s no telling how long it’s going to last,” Dr. Giacomo Santangelo, an economist who lectures at Fordham University, told The Post when asked about the turmoil on Wall Street.
Foreign nations rushed to negotiate with the US on President Trump’s stiff “Liberation Day” tariffs. REUTERS“As long as there are tariffs we are going to experience a negative outcome.”
According to Santangelo, the tariffs will reverberate across the US economy since “more than 70% of goods that we consume are not produced domestically while almost everything that is produced in the US is done with parts that are from countries that are now subject to prohibitive tariffs.”
“Those companies are going to suffer because their costs are going to skyrocket,” he said.
With Post wires
