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What was a massive rally on Wall Street has turned into yet another sizeable decline.
Cheap stocks and hope for signs of trade negotiation sent markets surging Tuesday morning — but that relief rally evaporated as the White House said it would levy enormous tariffs on China.
The Dow Jones Industrials fell 320.01 points to conclude Tuesday at 37,645.59. Apple led the losses with the iPhone maker’s costs set to surge with new China tariffs.
The S&P 500 index dipped 79.48 points, or 1.6%, to 4,982.77, and was inches away from closing in a bear market with it down more than 19% from its February record.
The NASDAQ gave up earlier gains and dropped 335.35 points, or 2.2%, to 15,267.91. The three major averages had been on track for their best session since Nov. 2022.
Markets fell because President Donald Trump is set to impose an additional 84% in levies across all Chinese imports on Wednesday, White House Press Secretary Karoline Leavitt announced Tuesday. That will mean all goods from the country are subject to a tariff of at least 104%.
China’s Commerce Ministry on Tuesday said the country would “fight to the end” of the trade war and would continue to stand up to Trump.
Tuesday marks a fourth session of violent market volatility since the rollout of Trump’s tariffs.
Prices for the 10-year Treasury skidded, hiking yields to 4.28% from Monday’s 4.22%. Treasury prices and yields move in opposite directions.
Oil prices weakened $2.16 to $58.54 U.S. a barrel.
Prices for gold leaped $26.90 to $3,000.50 U.S.