4:10pm: Broad selloff hits stocks
US stocks took another hit on Tuesday, wrapping up a second straight day of losses as trade worries and cautious corporate outlooks weighed on investor confidence.
The Dow dropped 390 points, or 1%, closing at 40,829. The S&P 500 fell 43 points, or 0.8%, to 5,607, and the Nasdaq slipped 155 points, or 0.9%, to finish at 17,690. The Russell 2000, which tracks small-cap stocks, also lost ground—down 18 points, or 0.9%, to 1,987.
The mood turned sour amid stalled trade talks and fresh concerns out of the auto sector, after Ford pulled its 2025 guidance due to tariff risks. That, along with weaker showings from a few major companies post-earnings, added to the pressure. With key economic reports and more earnings still to come this week, many investors opted to play it safe, driving broad-based selling across the board.
3:50pm: Dow falls
Wall Street is grappling with renewed uncertainty as the Dow plunges, driven by a mix of unclear monetary policy from the Federal Reserve and disappointing corporate earnings.
“An uncertain monetary policy from the Federal Reserve (Fed) and a mixed corporate earnings season have triggered volatility in the major indexes,” said Antonio Di Giacomo, Financial Markets Analyst for LATAM at XS.
Investors are now closely watching the Fed’s upcoming meeting, where rates are expected to hold steady, but inflation pressures and political instability complicate the outlook.
A mixed economic picture — with some growth in services but rising costs and a widening trade deficit — has added to investor unease.
Meanwhile, persistent trade tensions between the US and China continue to cloud global economic prospects. Despite some resilience in sectors like technology and innovation, the broader market remains fragile, with each new data point or political development capable of shifting sentiment sharply.
3:15pm: Stocks on the move
Hims & Hers Health shares surged 10% after the company posted strong Q1 results and outlined a $6.5 billion revenue goal by 2030.
Century Lithium Corp. rose 6% following better-than-expected lithium recovery rates using DLE technology at its Nevada pilot plant.
Tiziana Life Sciences shares jumped 21% after early-stage data showed its nasal MS treatment stabilized disease and reduced brain inflammation.
Santacruz Silver Mining gained 5% after making a second $7.5 million payment to Glencore as part of its Bolivian asset acquisition.
Palantir Technologies dropped nearly 13% as Q1 results, though strong, fell short of lofty investor expectations for the high-flying tech stock.
DoorDash shares fell 8% despite beating revenue estimates, as its Q1 profit margins disappointed some investors.
Ford Motor Company was set to open 2.5% lower after withdrawing full-year guidance due to uncertainty over proposed U.S. auto tariffs.
2:16pm: Trump, Carney spar in first White House meeting
In a tense and occasionally awkward meeting at the White House on Tuesday, US President Donald Trump and Canadian Prime Minister Mark Carney clashed over trade and statehood.
Trump reiterated his controversial suggestion that Canada should become the 51st US state—a notion Carney firmly rejected, saying Canada is “not for sale, ever.”
Trade disagreements dominated the discussion, with Trump accusing Canada of benefiting disproportionately from the relationship and refusing to lift tariffs on Canadian goods, stating bluntly, “It’s just the way it is.” He also dismissed Canadian auto, steel, and aluminum imports, asserting that the US wants to produce its own goods.
Despite the tensions, the meeting included moments of levity, with Carney playfully mouthing “never” multiple times in response to Trump’s statehood comments. Carney also acknowledged the need to revisit the current North American trade deal, CUSMA, calling it a foundation for broader negotiations, while Trump indicated the agreement is "fine" as is.
Nevertheless, Carney praised Trump as a “transformational president” with a focus on American workers, though the two leaders remained far apart on key trade issues.
1:05pm: Global M&As slow down
Global mergers and acquisitions (M&A) activity fell to its lowest level in two decades in April, as mounting uncertainty over U.S. trade policy prompted executives and bankers to hit pause on deals.
A Reuters report highlighted data from Dealogic that indicated the number of M&A contracts signed worldwide dropped to a level not seen since February 2005 — a sharper slowdown than during the depths of the COVID-19 pandemic or the 2008 financial crisis.
The US, the world’s largest M&A market, saw just 555 deals completed in April, marking the lowest monthly total since May 2009.
12:15pm: Equities slide
Stocks are modestly lower at midday as investors weigh renewed trade tensions and await signals from the Federal Reserve.
Both the Dow and the Nasdaq are down 0.2%, while the S&P 500 is flat.
That indicates US markets are on track for their second straight day of falling share prices.
"The lingering threat of new tariffs being imposed by President Trump led to a rise in the gold price on safe haven flows and an outflow of US stocks into Asian and European indices," commented Axel Rudolph, Senior Technical Analyst at online trading platform IG.
11:25am: Trade deficit widens
The US trade deficit hit a record high in March, mainly because businesses were rushing to import goods ahead of President Trump’s hefty new tariffs. That import surge ended up dragging down GDP in the first quarter — the first time that's happened in three years.
According to the Commerce Department, the U.S. brought in record amounts of goods from 10 countries, like Mexico and Vietnam. Interestingly, imports from China actually dropped to their lowest level in five years, likely because the U.S. slapped massive 145% tariffs on Chinese goods starting in April.
In numbers: the trade gap jumped 14% to a record $140.5 billion. Imports rose sharply — especially consumer goods like pharmaceuticals and tech gear — hitting an all-time high of $419 billion. Car imports also saw a boost, while industrial supplies and crude oil dipped.
Exports, on the other hand, barely budged. They were up just 0.2%, with industrial supplies like natural gas and gold helping push the total to a record $278.5 billion.
10:35am: Low probabilty of rate cut
As the Fed begins its two-day meeting, the probability of a June rate cut is under 30%, according to Ipek Ozkardeskaya, Senior Analyst at Swissquote Bank.
"Chair Powell’s post-decision press conference will be key to gauging whether the FOMC leans toward cutting in June due to economic headwinds or opts to wait for clarity on tariffs and inflation," Ozkardeskaya commented.
"So far, the rebound in the US two-year yield suggests markets are giving more weight to the "wait and see" approach.
Ozkardeskaya added that a "hesitant Fed" could still weigh on US growth expectations, keeping the dollar under pressure.
9.55am: Palantir at front of tech-led slide
The main US stock market indexes have all dived lower at the open, led by Peter Thiel's Palantir, down over 12%.
That dragged on the Nasdaq, which was the biggest faller in early trading, down 1.3%.
The S&P 500 and the Dow Jones were both down just over 1%, while the small cap Russell 2000 slipped 0.9%.
All but two of the Nasdaq's 20 largest names were in the red.
DoorDash fell 7.3% after reporting disappointing earnings and agreeing a deal to buy UK peer Deliveroo for almost $4 billion.
7.50am: Nasdaq tipped to extend losses
Wall Street stocks have been tipped to extend their losses on Tuesday, as markets mull the start of the Federal Reserve meeting and digest another major auto manufacturer withdrawing guidance due to tariff risks and uncertainties.
Ford Motor Company (NYSE:F) said overnight that it expected a $1.5 billion impact from tariffs in 2025 and pulled its financial guidance due to the associated uncertainty.
Palantir Technologies Inc (NYSE:PLTR) shares were marked 7% lower ahead of the bell as investors reacted to strong but not spectacular first-quarter results that failed to sustain one of the tech sector's top-performing stocks this year.
US stock futures are also in the red, led by the Nasdaq with a 1% deficit anticipated. S&P 500 futures were down almost 0.8% and those for the Dow Jones were down 0.6%.
Wall Street's main indexes closed lower the day before, ending the S&P 500’s nine-day winning streak that was the best run for the index since late 2004.
The sell-off in US futures increased in intensity as the Tuesday morning session progressed, said market analyst David Morrison at Trade Nation.
"Traders appear to be taking profits and moving to the sidelines ahead of the Federal Reserve’s FOMC meeting, which kicks off today."
Tariffs also returned to the spotlight this week, after President Trump said he would impose a 100% levy on films made in foreign lands, with levies on the pharma sector said to be next in line.
"Traders look to be using the bounce since last month’s tariff tantrum as an opportunity to reduce their market exposure," said Morrison.
In commodities, crude oil jumped over 2% after sliding lower over the weekend. WTI, having dropped back towards $55 per barrel, rose to over $58 following an announcement from OPEC+ over the weekend that they would accelerate output hikes.
Gold was also higher, back above $3,380 per ounce.