With the business world in turmoil once again, stocks took a hit on Tuesday, following a steep decline on Monday. The market tumbled as President Donald Trump continued to escalate his trade war with Canada while a warning from Delta Air Lines caused a ripple effect among travel-related stocks. Here are the key highlights from a whirlwind day on Wall Street:
- The Dow Jones Industrial Average plummeted 478 points, or 1.1%, while the S&P 500 slid 0.8%. Despite a 1.7% rebound in Nvidia and gains in some other Big Tech stocks, the Nasdaq closed down about 0.2%.
- Trump intensified the dispute with Canada by announcing a plan to double tariffs on the country’s aluminum and steel to 50%. This move came after Ontario imposed a levy on electricity sent to the U.S.
- The Trump administration remains steadfast in its belief that these economic changes will ultimately benefit the nation, with spokesperson Karoline Leavitt emphasizing a transition into a “golden age of American manufacturing.”
- On a positive note, U.S. job openings surged to 7.74 million in January, indicating a stable labor market as President Joe Biden’s term ended. Tesla stock made a modest recovery, rising 3.8%, after Trump expressed interest in purchasing one of Elon Musk’s EVs.
- However, Delta Air Lines suffered a setback, with its stock plunging 7.3% after slashing first-quarter profit and sales forecasts due to weakened domestic travel demand. Other travel-related companies like American Airlines, Expedia, Booking Holdings, Hilton, and Airbnb also experienced declines.
- Retailers faced a tough day as well, with Kohl’s shares plunging 24% following disappointing quarterly earnings and projections. Dick’s Sporting Goods fell 5.7% due to a bleak earnings outlook despite solid fourth-quarter results.
- In a surprising turn of events, Southwest Airlines stock soared 8.3% after the carrier announced it would no longer offer free bags to most passengers. While this move is expected to increase revenue, analysts caution that it may negatively impact the airline’s brand and customer loyalty.
- Oracle shares dropped 3.1% after the company’s fiscal third-quarter earnings failed to meet analysts’ expectations.
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