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Tue, Mar 4, 2025, 8:42 AM 1 min read
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US markets eliminated all of their post-election gains as stocks deepened their sell-off with fresh tariffs on Canada, Mexico, and China now officially in effect.
The Dow Jones Industrial Average (^DJI) fell about 1.5%, while the benchmark S&P 500 (^GSPC) dropped 1.6%. The Nasdaq Composite (^IXIC) also shed around 1.5%, as all three indexes took another big leg lower.
Notably, the Nasdaq is set to close down at least 10% from its record closing high on Dec. 16, which would mark correction territory for the tech-heavy index.
Rising fears of a full-on trade war drove Monday's sell-off after the president said there was "no room left" for Canada or Mexico to strike a deal to mitigate promised tariffs.
Stocks are retreating as markets assess the likely impact of Trump's broad tariffs on America’s top trading partners. The measures — fresh 25% tariffs on Canada and Mexico, and a doubling in China duties to 20% — were signed into effect at midnight ET on Tuesday.
SNP - Free Realtime Quote USD
As of 11:15:38 AM EST. Market Open.
^GSPC ^DJI ^IXIC
Canada hit back with a sweeping package of immediate tariffs on US imports, while China retaliated with additional 15% duties on US farm products such as chicken and pork, to come on March 10. Many saw Beijing's response as less aggressive than feared, leaving room for negotiation with Trump.
Target (TGT) warned that tariffs will put pressure on first quarter profit as it delivered an earnings beat before the bell. The retail giant's stock was little changed in early trading. Meanwhile, its sector peer Best Buy (BBY) put out a muted annual sales forecast alongside its own quarterly beat. The additional sign of consumer caution helped send its shares lower.
LIVE 9 updates
The 'Trump bump' is gone as markets wipe out post-election gains
US markets have eliminated all their post-election gains as stocks deepen their sell-off with fresh tariffs on Canada, Mexico, and China now officially in effect.
The benchmark S&P 500 (^GSPC) index is now down 1% since Election Day. Notably, it has erased about $3.3 trillion in market cap since Feb. 19.
The Nasdaq 100 (NQ=F) has fallen over 4% over that same time period, while the broader tech index (^IXIC) is down about 1.5%. The blue-chip Dow (^DJI) has dropped nearly 1% since Nov. 5.
DJI - Free Realtime Quote USD
As of 11:15:38 AM EST. Market Open.
^DJI ^GSPC ^IXIC
Only a few months ago, stocks traded at consistent records as Donald Trump's presidential win fueled bullish Wall Street euphoria on hopes of pro-business policies and lower taxes.
Flash forward to today, and that euphoria has all but evaporated as Trump's tariffs spark growth fears while inflation remains stubbornly elevated.
"Many of the key trends in financial markets in the run-up to and immediate aftermath of the US election last November have stalled or partly reversed since President Trump took office last month," Jonas Goltermann, deputy chief markets economist at Capital Economics, wrote in a note last week.
"Since then, US Treasury yields have dropped back, the 2-10s curve has flattened, US equities have struggled both in absolute terms and relative to those elsewhere, and the dollar has dropped back," he said. "In other words, the 'Trump trade' narrative that dominated many markets in Q4 is floundering."
US stocks slide at the open
US stocks continued their sell-off on Tuesday as fresh tariffs on Canada, Mexico, and China officially went into effect at midnight.
The Dow Jones Industrial Average (^DJI) fell about 0.7%, while the benchmark S&P 500 (^GSPC) dropped 0.8%. The tech-heavy Nasdaq Composite (^IXIC) shed around 0.9%, as all three indexes took a leg lower.
DJI - Free Realtime Quote USD
As of 11:15:38 AM EST. Market Open.
^DJI ^IXIC ^GSPC
Treasury Secretary Bessent shrugs off tariff sell-off, says Wall Street isn’t the focus
US Treasury Secretary Scott Bessent argued that a market sell-off in response to new tariffs would be temporary, Bloomberg reports, though he acknowledged there may be a transition period as new duties on Canada, Mexico, and China take effect.
The Treasury Secretary's comments come after stocks plummeted Monday in response to the tariffs. On Tuesday morning, futures for Dow Jones Industrial Average futures (YM=F) fell 0.3%, while S&P 500 futures (ES=F) dropped 0.8%. Contracts on the tech-heavy Nasdaq 100 (NQ=F) shed nearly 1%.
CME - Delayed Quote USD
As of 11:05:38 AM EST. Market Open.
ES=F NQ=F YM=F
Bloomberg reports:
US yield curve gets steeper as tariffs put growth at risk
The risk to global growth from Trump's tariffs is rattling bond investors, who appear increasingly convinced that the president is no longer just making threats as a precursor to a deal.
Traders also ramped up bets on the Federal Reserve making more interest-rate cuts than previously expected.
Bloomberg reports:
Okta stock jumps on 'blowout quarter'
Shares of Okta jumped in premarket trading Tuesday after the identity and cybersecurity company reported solid sales, earnings, and 2025 profit guidance.
All three metrics beat Wall Street analysts' estimates as the company benefitted from increased corporate spending on cybersecurity protection amid the AI boom.
Okta stock rose 14% Tuesday morning and was a trending ticker on Yahoo Finance.
"This is a blowout quarter," Okta co-founder and CEO Todd McKinnon told Yahoo Finance's Brian Sozzi in an Opening Bid podcast exclusive. "It's reflective of big deals in the quarter," McKinnon said, pointing to a 25% surge in subscription backlog to more than $4 billion.
Ignore the Target earnings beat
Target's (TGT) earnings just hit the wires.
And while the earnings beat will quickly grab your eyes, it's more important to lock in on this line from the release given all the risk around tariffs:
"In light of ongoing consumer uncertainty and a small decline in February net sales, combined with tariff uncertainty and the expected timing of certain costs within the fiscal year, the company expects to see meaningful year-over-year profit pressure in its first quarter relative to the remainder of the year," Target said.
Target declined to share specific first quarter earnings guidance. Yahoo Finance data shows Wall Street analysts were looking for a slight first quarter year-on-year earnings improvement.
Good morning. Here's what's happening today.
Xi leaves door open for talks with Trump
China's tit-for-tat move to Trump was to slap tariffs of up to 15% on US farm goods such as pork and beef, starting next week. That's going down generally well on Wall Street, which sees the targeted action as designed to avoid escalating a trade war between the world's top two economies.
Bloomberg reports:
President Donald Trump's tariffs take effect
US President Donald Trump's plan for wide-ranging tariffs against Canada and Mexico has occurred with no further delays.
Yahoo Finance's Ben Werschkul reports:
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