- The S&P 500 has lost $5 trillion in market value since peaking on February 19.
- The decline accelerated following Trump’s tariff threats against top US trading partners.
- Automakers and industrial stocks fell sharply on Tuesday after threats of increased steel tariffs.
The S&P 500 has erased $5 trillion in market value in less than a month.
After a brutal sell-off in Monday’s session, the carnage continued for investors on Tuesday, with markets plunging a day after a huge rout marked the worst session for the Nasdaq since 2022.
Adding to the pressure on Tuesday were fresh remarks from President Donald Trump threatening to double tariffs on metal imports from Canada.
Here are the intraday lows for the major indexes at around 1:35 p.m. ET on Tuesday:
The wipeout in recent weeks has been a result of investors’ reactions to Trump’s tariff policy and his commitment to pushing forward with a trade war against some of America’s biggest partners, including Canada and Mexico.
No sector has been spared, but the decline has been particularly painful for the highest-flying growth names. Nvidia stock alone has shed more than $1 trillion in value since it peaked in early January, with its stock down about 30%, and the AI trade broadly has suffered amid growth concerns and waning enthusiasm among investors.
Markets Insider
The sharp and sudden decline accelerated after President Donald Trump dug in his heels and continued to threaten tariffs against America’s allies.
On Tuesday, the President said in a post on Truth Social that he instructed his Commerce Secretary, Howard Lutnick, to place an additional 25% tariff on Canadian steel and aluminum.
The move, expected to be enacted on March 12, would bring the total tariff rate to 50% for steel and aluminum imports from Canada. The tariff escalation is in retaliation for Ontario imposing a 25% tariff on the electricity it exports to the US.
Share of automakers and industrial companies, which count steel and aluminum as major inputs, were immediately impacted by the news.
General Motors and Ford each declined as much as 4%, while the industrials sector declined about 2%, double the S&P 500’s decline of 1%.
Meanwhile, the S&P 500 is just a few points shy of entering correction territory, which is defined as a 10% decline from its prior high. The index is down 9.58% since its February 19 record.
Trump, for his part, appears unfazed by the stock market weakness. In a recent interview, he told Fox News that he refused to rule out the possibility of a recession hitting the economy.
Unlike his first term, the president has indicated that the administration is focusing less on the stock market and more on reducing borrowing costs by pushing the 10-year Treasury yield down.
Trump has also previously threatened more tariffs are coming, with an April 2 date set for a 25% tariff on all goods imported from Europe.