Wall Street made another volatile journey on Tuesday as a morning rally which saw the industrial average of Dow Jones jump more than 1,400 points bordered by the afternoon – abandoning all its earnings in the middle of the trade tensions that increase.
The first -rate index climbed 1,146 points after the opening bell on renewed optimism for an agreement with business partners before the rigid prices are being set up on Wednesday.
The enthusiasm was supported by positive remarks by the Secretary of the Treasury Scott Bessent, who referred to the opening to the tariff negotiations, suggesting that the administration could “end up with good business”.
President Trump amplified hopes by confirming discussions with the leader in South Korea and various other nations were underway.
However, market confidence has proven to be ephemeral.
At the end of the afternoon, the gains were replaced by strong drops after the White House announced that it would equalize an additional 50% tax on China – increasing the total to 104% – due to reprisal rates to 34% per Beijing on American products.
The DOW ended the day down 320 points to 37,645. It has now lost almost 5,000 points since the announcement of Trump’s “Liberation Day” in the White House last Wednesday.
The S&P 500 closed with a loss of 1.6%, at 4,983, while the Nasdaq, heavy with technology, fell by almost 2.2%, to 15,268.
Earlier in the day, the Nasdaq had climbed more than 4%, blowing its biggest intraday gain since at least 1982. The S&P, on the other hand, slipped into the bears territory, ending nearly 20% reduction on its most recent summit.
“I think the market is trying to find the bottom,” Dr. Sung Sohn, professor of finance and economics at Loyola Marymount in Los Angeles, told The Post.
“We will see a good amount of fluctuation – from top to bottom, from top to bottom, from top to bottom – depending on the news of the White House.”
The feeling of investors was notably disturbed after the United States representative, Jamieson Greer, said that President Trump would not grant exceptions to the last global administration rates – neither to specific products nor to individual enterprises.
This striking announcement destroyed the hopes that had motivated the bullish momentum in the morning.
Technological actions, hundred in recent market advances, brought the weight of Tuesday’s reversal.
The persistent uncertainty on the prices follows the similar negotiation session on Monday, characterized by fluctuating optimism and subsequent disappointment, because the initial hopes of tariff relief have proven unfounded.
“It is not known how long it will last,” said Dr. Giacomo Santangelo, an economist who gives conferences at Fordham University, at the post when he questioned the turmoil at Wall Street.
“As long as there are prices, we will experience a negative result.”
According to Santangelo, the prices will affect the American economy because “more than 70% of the goods we consume are not produced at the national level while almost everything that is produced in the United States is done with parties that come from countries that are now subject to prohibitive prices.”
“These companies will suffer because their costs will skyrocket,” he said.
With postal wires
