Wall Street’s key stock indices fell sharply on Tuesday, primarily driven by renewed trade tensions between the United States and China. This downturn followed US President Donald Trump’s threat last week to impose additional 100% tariffs on Chinese goods, a response to Beijing’s new export controls on rare earth minerals.
The third quarter earnings season commenced on Tuesday, with JPMorgan Chase, Wells Fargo, and Goldman Sachs all declaring their results.
Despite several banks beating profit estimates, the prevailing anxiety over trade policy overshadowed strong results, leading to mixed stock performances.
At 10:08 AM ET, the major indices were trading down significantly. The Dow Jones Industrial Average fell 321.93 points, or 0.70%, to 45,745.65, the S&P 500 lost 55.76 points, or 0.85%, to 6,598.96 and the Nasdaq Composite lost 305.14 points, or 1.34%, to 22,389.47.
At the open, the Dow Jones Industrial Average fell 195.7 points, or 0.42%, to 45,871.89. The S&P 500 fell 52.2 points, or 0.78%, to 6,602.49 , while the Nasdaq Composite dropped 306.6 points, or 1.35%, to 22,388.043.
Gainers and Losers
JPMorgan Chase stock dipped 4.1% despite the bank reporting better-than-expected third quarter profit.
Goldman Sachs shares fell 4.6% even though the company beat Wall Street estimates for quarterly profit.
Wells Fargo stock jumped 2.9% after the bank surpassed third quarter profit estimates.
Citigroup shares slipped 0.9%.
BlackRock shares gained 0.7% in choppy trading.
Artificial intelligence chip company Nvidia’s stock declined 3.5%.
Broadcom tumbled 4.2%, following a nearly 10% surge on Monday after announcing a partnership with OpenAI.
Shares of electric vehicle maker Tesla edged down about 3%.
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