The Dow Jones Industrial Average slid nearly 400 points on Tuesday as uncertainty surrounding global trade deals weighed on investor sentiment. The S&P 500 also posted back-to-back losses, while the Nasdaq Composite dipped 0.87%. President Donald Trump’s comments on trade deals dashed hopes of imminent progress on the tariff front.
During a meeting with Canadian Prime Minister Mark Carney, Trump walked back on promises that trade agreements were on the horizon, stating, “We don’t have to sign deals.” This contradicted earlier statements made by Treasury Secretary Scott Bessent, who had indicated that deals were close to being finalized. Bessent, however, reiterated to the House appropriations committee that the majority of the U.S. trade deficit is with a small number of countries and expressed confidence that most of these deals could be wrapped up by the end of the year. Stocks also wavered as the Federal Reserve began its two-day policy meeting on Tuesday.
The central bank is expected to keep rates steady, with markets suggesting only a 3.1% chance of easing.
Trade uncertainty impacts Dow markets
Investors will be closely monitoring Fed Chair Jerome Powell’s comments on the economic outlook.
In corporate news, JPMorgan downgraded shares of fast-casual salad chain Sweetgreen to a neutral rating, citing softening consumer demand and the company’s expected negative free cash flow through 2030. Meanwhile, the pace of merger and acquisition activity has slowed globally, with the number of deals signed in April falling to the lowest level since February 2005. Diamondback CEO Travis Stice warned that U.S. onshore oil production has likely peaked and will begin to decline due to the recent plunge in crude prices.
U.S. crude oil prices rose more than 3% on Tuesday to $59.26 per barrel, after closing at a four-year low on Monday. President Trump also indicated that his administration was not planning to strike trade agreements with every individual country, suggesting that they would instead set tariffs unilaterally. The lack of concrete progress on trade deals continues to weigh on investor sentiment and market performance.
