U.S. stocks fluctuated between gains and losses on Tuesday morning, showing little change after Monday’s sharp decline, which followed President Donald Trump’s reluctance to rule out a possible recession.
Market Performance
The Dow Jones Industrial Average dropped about 225 points (0.5%), while the S&P 500 edged up 0.2%. The Nasdaq, driven by tech stocks, gained around 0.5% in early trading.
Tuesday’s market turbulence continued a broader downward trend triggered by new U.S. tariffs on Canada, Mexico, and China—some of which have been delayed. China’s retaliatory tariffs, announced Monday, intensified the ongoing trade conflict between the world’s two largest economies.
Recent Market Declines
Monday’s session saw the Nasdaq plummet 4%, marking its worst trading day since 2022. The Dow and S&P 500 each dropped more than 2%, extending last week’s losses. The S&P 500 also recorded its worst week since September.
Trump’s Comments on a Possible Recession
In a Fox News interview aired Sunday, Trump suggested recent tariffs might lead to a “period of transition,” but he avoided making a definitive recession prediction.
“I hate to predict things like that,” Trump said. “It takes a little time, but I think it should be great for us.”
Pressed further, he admitted, “I tell you what, of course you hesitate. Who knows?”
Economic Outlook
Investors are awaiting a report from the Bureau of Labor Statistics on job openings, expected Tuesday morning. The data could provide further insight into the economy’s strength amid ongoing market volatility.
Keep up with the U.S. economy with us on Que Onda Magazine.
