4:15pm: Another day of losses
The three major stock indexes booked another day of losses after a volatile session as investors weighed up Trump’s latest tariffs plans.
The Dow Jones led the losses down 1.1% at 41,433 points. The S&P 500 was down 0.8% at 5,572 points while the Nasdaq fell 0.2% at 17,436 points.
3:30pm: Ontario suspends electricity tax ahead of White House meeting
Speaking outside the White House, US president Donald Trump said he is reconsidering his decision to double tariffs on Canadian steel and aluminium imports.
This comes as Ontario premier Doug Ford announced the suspension of the province’s 25% surcharge on electricity exports to the US after securing a meeting in Washington with commerce secretary Howard Lutnick.
“I’m looking at that, but probably so,” Trump said. He also called Ford “a gentleman” and again argued that Canada should join the US as its 51st state.
In a joint statement, Ford and Lutnick said the Ontario premier and federal finance minister Dominic LeBlanc would travel to the White House for a meeting on Thursday.
“Today, United States Secretary of Commerce @howardlutnick and Premier of Ontario Doug Ford had a productive conversation about the economic relationship between the United States and Canada,” the statement said.
“Secretary Lutnick agreed to officially meet with Premier Ford in Washington on Thursday, March 13 alongside the United States Trade Representative to discuss a renewed USMCA ahead of the April 2 reciprocal tariff deadline. In response, Ontario agreed to suspend its 25 per cent surcharge on exports of electricity to Michigan, New York and Minnesota.”
2:25pm: Ukraine ceasefire deal reached, Rubio says
US stocks moved slightly higher on Tuesday afternoon after Ukraine said it had accepted a US-brokered 30-day ceasefire proposal, though Russia has yet to agree to the deal.
The news was announced by US Secretary of State Marco Rubio at a news conference in Saudi Arabia.
The US has also agreed to immediately lift its ban on military aid and intelligence sharing with Ukraine.
The Dow Jones was down 0.9%, the S&P 500 0.5% and the Nasdaq rose 0.3 %.
1:27pm: US dollar depreciation
Fears of an escalating US trade war have led to further US dollar depreciation, while gold, silver and copper prices rising amid crude oil and natural gas prices, noted Axel Rudolph, Senior Technical Analyst at online trading platform IG.
"President Trump's announcement that, starting Wednesday, the United States will double tariffs on Canadian steel and aluminum imports from 25% to 50%, in retaliation for Ontario's recent 25% surcharge on electricity exports to the US, exacerbated Monday's sharp sell-off which pushed the S&P 500 to a six-month low and wiped $4 trillion off its valuation," Rudolph noted.
Markets continued to fall on Wednesday afternoon, with the Dow down 1.7%, the S&P 500 down 1.5% and the Nasdaq down 1.2%.
12:40pm: Growing risk of recession: Summers
Former Treasury Secretary Lawrence Summers has warned of a growing risk of recession and mounting economic instability.
“We’ve got a real uncertainty problem, it’s going to be hard to fix,” Summers wrote in a post on X, adding that the US economy is almost certain to slow relative to forecasts, with a “serious, near 50% prospect of recession.”
His remarks come amid concerns over newly announced tariffs on Canadian steel and aluminum, which he described as “the worst trade policy yet.” Summers argued that raising the cost of key inputs for U.S. manufacturers—who employ 10 million workers—amounts to economic self-sabotage. “It is a self-inflicted wound to the U.S. economy that we cannot afford, at a moment when recession risks are rising,” he said.
Investors have grown increasingly wary of the economic outlook as trade tensions escalate and policy uncertainty deepens. Summers warned that “every time this Administration recommits to its current policy direction, the recession risk and the market risk increase.”
11:55am: Tariffs to take effect Wednesday
President Donald Trump's 50% tariff on Canadian steel and aluminum is set to take effect on March 12.
In a post on Truth Social, Trump called Canada “one of the highest tariffing nations” and demanded the removal of Canadian dairy tariffs on US products.
He also signaled plans to declare a “National Emergency on Electricity” to counter what he called an “abusive threat” from Canada.
The Dow, which had started to climb in the last hour, fell back under 1% by noon, while the Nasdaq, which had been the sole major index in positive territory, fell back into the red.
11:12am: Dow plunges
The Dow Jones fell more than 430 points on Tuesday, extending losses from the previous session, after Donald Trump announced sharp tariff increases on Canadian steel and aluminum and threatened broader trade measures.
Trump raised tariffs on Canadian steel and aluminum to 50% and said Canada could have them removed if it became the 51st US state. He also warned of massive tariffs on Canadian automobiles set for April 2 and suggested declaring a national emergency over Canadian electricity tariffs.
Trump's move has eroded confidence in the markets, said Kathleen Brooks, research director at XTB.
"The tit-for-tat tariff policy that was started by Donald Trump, is bad news for equity market bulls," Brooks commented.
"Trump’s erratic and reactionary trade policy is eroding faith in US exceptionalism and fueling recession fears."
10:58am: Bearish signals
Investors should "proceed much more cautiously" with the Nasdaq 100 index and large cap tech and growth stocks, said Larry Tentarelli, Chief Technical Strategist for Blue Chip Daily Trend Report.
Tentarelli's warning comes after the Nasdaq 100 index closed below the 40-week moving average for the first time since March 2023 last Friday.
As Tentarelli explained, the 40-week moving average is considered a key technical indicator for many large institutions -- the equivalent to the 200-day moving average, and it is an institutional benchmark.
"For market bulls, they will want to see the price reclaim this 40-week MA level as soon as possible. If the index continues to trend lower and make a lower weekly closing low this Friday, that should be considered as another bearish trend signal," Tentarelli wrote.
"This remains a very news driven and highly volatile market. If there are any positive news catalysts, especially with regards to tariffs, then (NDX) could stage a sharp reversal."
9.56am: Mixed start
US markets are mixed in early trading.
The S&P 500 is down four points, essentially flat, while the Dow Jones has fallen 0.6% largely due to Verizon dropping 7% and only a third of its 30 constituents being in positive territory.
The Nasdaq is up 0.5%, thanks to rebound gains for Nvidia, Amazon, Meta -- all roughly 2% higher -- and Tesla bouncing back with a 3.5% gain following the 15%-plus loss yesterday.
Apple is down 1.5%.
Verizon dropped sharply after telling investors that is expects first-quarter postpaid phone net additions to be flat to slightly down compared to last year.
Small caps are positive, with the Russell 2000 rising 0.4%.
8am: Slight rebound predicted for Nasdaq
US stocks have been tipped to make a slight rebound on Tuesday, following what was the worst season in over three years for the tech-powered Nasdaq.
On the futures market, the S&P 500 was anticipating a 0.5% rise, with Nasdaq futures up 0.6% and Dow Jones futures up 0.4%.
Yesterday, the S&P 500 lost 2.7% and the Nasdaq plummeted 4% in what was the biggest daily drop since September 2022 as the VIX volatility index climbed to the highest level since last August.
The S&P 500 has fallen 8.62% from its peak, surpassing the sell-off last summer, making it the largest selloff since 2023.
The Dow fell 2.1% and the small cap Russell 2000 closed down 2.7% to its lowest level since last June.
Strategists at Deutsche Bank pointed out that the so-called Magnificent 7 tech giants moved into bear market territory, having shed more than 20% since peaking in December, with Tesla shares tumbling over 15% on the day, NVIDIA and Apple dropping either side of 5%, Alphabet and Meta Platforms 4.4%, Microsoft 3.3% and Amazon 2.4%. Peter Thiel's Palantir fell 10%.
With US futures pointing higher on Tuesday, market analyst Fawad Razaqzada at City Index said: "Are dip-buyers back or is this the calm before the (resumption of) storm?"
Stock indices, metals and oil prices and cryptocurrencies have all bounced back, he said, after the Wall Street slump on Monday, which seemed to be over fears over Donald Trump's trade war.
Citi was not dip-buying, as the US banking giant downgraded its stance on US stocks, saying its view is that "that US exceptionalism is at least pausing".
Goldman Sachs also joined in the bearish views, cutting its forecast for US economic growth to 1.7% for 2025, down from a previous 2.4% estimate.
In a separate note, Goldman's head of equity trading says: "The market’s post-election sugar high has turned into a bit of a nasty hangover as the policy realities of Trump 2.0 begin to become clear."
Exceptionalism of some kind is sure to be discussed by President Trump as he holds a business round-table with CEOs of banks and some Washington-based businesses at the White House today.
Some of the bosses will include Wall Street’s banks, Bloomberg News reported.