Stock Market Today: Live Updates

Stocks fell on Tuesday, resuming the sell-off seen late last week, as trade concerns were reignited overnight by China.

THE Dow Jones Industrial Average lost 504 points, or 1.1%. THE S&P500 lost 1.3%, while the Nasdaq Composite lost almost 2%.

The selling was led by AI shares that fueled the bull market but were also the biggest losers in Friday’s rout. Nvidia lost almost 4%. Tesla and Oracle lost 3.8% and 4.3%, respectively.

After reducing its exports of rare earths to the United States, China has decided to tighten its grip on global shipping.

China has imposed sanctions on five US subsidiaries of South Korean company Hanwha Ocean. This will prohibit organizations and individuals in China from doing business with the affected companies. The move, the Chinese government said, is aimed at strengthening China’s security.

US Treasury Secretary Scott Bessent told the Financial Times on Monday that China’s recent actions demonstrate its economic weakness, adding that the country’s leaders “want to drag everyone down with them.”

The Cboe Volatility Index – Wall Street’s so-called fear gauge – rose above Friday’s closing level, signaling renewed anxiety on Wall Street that there will be no easy solution to this trade war with China and that hedging future losses using options may make sense. The ‘VIX reached a high above 22, which was also a four-month high.

Trade tensions have escalated since late last week, when President Donald Trump threatened to impose additional 100% tariffs on Chinese imports, sending stocks sharply lower. The Dow Jones lost more than 800 points on Friday, while the S&P 500 recorded its biggest one-day loss since April 10.

On Sunday, however, Trump toned down his rhetoric, noting in a Truth Social article: “Don’t worry about China, everything will be fine.” »

That comment sent shares soaring Monday. The S&P 500 and Dow each jumped more than 1% on the day, marking the former’s biggest one-day gain since May 27. The Dow had its best day since September 11 and ended a five-day losing streak. Monday’s rebound retraced more than half of Friday’s S&P 500 decline and two-thirds of the Dow’s steep losses.

Tuesday’s decisions came despite the release of generally strong quarterly results. J&J, JPMorgan Chase and Wells Fargo all reported earnings that beat analysts’ expectations. Goldman Sachs also beat estimates.

“Trade policy remains a key driver for U.S. financial markets this year, and last week saw a sharp escalation in tensions between the United States and China,” Ulrike Hoffmann-Burchardi, global head of equities at UBS Global Wealth Management, said in a note. “With positions on both sides hardening, we expect increased stock market volatility through the end of the month. However, the history of Trump-Xi negotiations suggests that escalation is often followed by tactical truces, and that rare earth minerals versus shipping fees could ultimately seal a deal.”