NEW YORK, New York - The freefall fn U.S. stocks continued Tuesday with all the major indices taking a hit durin g the bulk of the day. However towards the close profit-takers moved in bringing the indices back from heavier losses.

U.S. President Donald Trump, despite the carnage on Wall Street, doubled-down on tariffs, announcing increasing imposts on Canadian steel and aluminium, increasing them from 25 percent to 50 percent. He also indicated tariffs would be coming which he says will decimate the Canadian auto industry.

"There's clearly a tolerance for pain on the part of the administration in pursuit of trade goals that are not necessarily entirely economic in nature," Ross Mayfield, Baird investment strategist told CNBC Tuesday. "At this point I'm still in the camp that we're not on the doorstep of a recession, but maybe a slowdown or growth scare. Non-recession sell-offs tend to be shorter and milder than the recessionary ones," he said.

Following are Tuesday's closing quotes for the major U.S. stock indices:

S&P 500: Broad Market Retreats

The S&P 500 index fell by 0.76 percent, closing at 5,572.07, with a trading volume of 4.01 billion shares. This decline reflects investor apprehension regarding the economic implications of intensified trade disputes.

Dow Jones Industrial Average: Significant Drop

The Dow Jones Industrial Average decreased by 478.23 points or 1.14 percent, ending at 41,433.48, with 807.671 million shares traded. The Dow's drop is attributed to fears of a potential recession and higher inflation under President Trump's aggressive trade policies and government job cuts.

NASDAQ Composite: Modest Decline

The NASDAQ Composite saw a slight decrease of 0.18 percent, or 32.23 points, closing at 17,436.10, with a trading volume of 7.395 billion shares. The technology-heavy index's relative resilience suggests that investors may still find value in tech stocks despite broader market concerns.

Market Outlook

The recent market volatility underscores the sensitivity of global financial markets to geopolitical developments and trade policies. Investors are advised to monitor these situations closely, as prolonged trade disputes could further impact market stability and economic growth.

Global Forex Market Reacts to Escalating Trade Tensions

On Tuesday, the global foreign exchange market experienced notable fluctuations as escalating trade tensions between the United States and Canada influenced currency pricing.

EUR/USD: Euro Strengthens Amid Dollar Weakness

The EUR/USD pair rose by 0.86 percent, reaching 1.0927. This appreciation of the euro against the US dollar is attributed to growing concerns over a potential US recession, following President Donald Trump's decision to double tariffs on Canadian steel and aluminum imports to 50 percent. Analysts suggest that the euro could test its November high of 1.0937 if the current momentum continues.

GBP/USD: British Pound Gains Ground

The British pound advanced by 0.64 percent against the US dollar, to last trade at 1.2959. The pound's strength is linked to the dollar's decline amid escalating trade tensions and concerns over the US economic outlook.

USD/JPY: Yen Strengthens as Safe-Haven Demand Increases

The USD/JPY pair decreased by 0.33 percent, with the dollar trading at 147.74 yen. The Japanese yen, traditionally viewed as a safe-haven currency, benefited from increased demand as investors sought stability amid global economic uncertainties.

USD/CAD: Canadian Dollar Appreciates Despite Tariff Concerns

Despite the announcement of increased US tariffs on Canadian metal imports, the Canadian dollar strengthened by 0.23 percent against the US dollar, with the USD/CAD pair firming to 1.4401. This movement suggests that investors may have already priced in the potential impact of the tariffs or are anticipating mitigating factors.

USD/CHF: Swiss Franc Gains Amid Market Volatility

The US dollar weakened by 0.16 percent against the Swiss franc, with the USD/CHF pair rising to 0.8820. The Swiss franc's safe-haven status attracted investors amid heightened market volatility and concerns over global economic stability.

AUD/USD and NZD/USD: Antipodean Currencies Strengthen

The Australian dollar rose by 0.44 percent against the US dollar, to last trade at 0.6304, while the New Zealand dollar increased by 0.41 percent, advancing to 0.57207. These gains reflect a broader weakening of the US dollar amid escalating trade tensions and investor concerns over the US economic outlook.

Overall, the forex market's movements on Tuesday highlight the significant impact of geopolitical events and trade policies on currency pricing, with investors seeking safe-haven assets amid rising economic uncertainties.

Global Markets Decline Amid Escalating Trade Tensions

Global stock markets experienced significant declines on Tuesday, as escalating trade tensions between the United States and Canada unnerved investors. President Donald Trump's announcement of increased tariffs on Canadian steel and aluminum imports by 100 percent (from 25 percent to 50 percent) intensified fears of a potential recession, leading to widespread sell-offs across the world.

S&P/TSX Composite Index: Canadian Market Affected

Canada's S&P/TSX Composite Index declined by 0.54 percent, ending at 24,248.20, with 364.618 million shares traded. The Canadian market's downturn is linked to escalating trade tensions with the United States, particularly President Trump's announcement of new tariffs on Canadian aluminium and steel imports.

UK and European Markets

In London, the FTSE 100 fell by 104.23 points, or 1.21 percent, closing at 8,495.99.

Germany's DAX index dropped 292.18 points, or 1.29 percent, to 22,328.77, while in France the CAC 40 declined by 105.69 points, or 1.31 percent, ending at 7,941.91.

The EURO STOXX 50 index decreased by 77.08 points, or 1.43 percent, closing at 5,309.90.

The Euronext 100 Index and Belgium's BEL 20 also saw declines of 1.19 percent and 1.48 percent, respectively.

Asian and Pacific Markets

Asian markets mirrored the global downturn.

China's SSE Composite Index, however, bucked the trend, rising by 13.67 points, or 0.41 percent, to 3,379.83.

In Japan the Nikkei 225 declined by 235.16 points, or 0.64 percent, closing at 36,793.11.

Hong Kong's Hang Seng Index remained relatively stable, edging down by 1.35 points, or 0.01 percent, to 23,782.14.

In Singapore the STI Index fell by 73.24 points, or 1.88 percent, closing at 3,825.83.

India's S&P BSE SENSEX saw a minor decrease of 12.85 points, or 0.02 percent, closing at 74,102.32.

In Indonesia the IDX Composite and Malaysia's FTSE Bursa Malaysia KLCI fell by 0.79 percent and 1.06 percent, respectively.

In South Korea the KOSPI Composite Index dropped 32.79 points, or 1.28 percent, closing at 2,537.60.

Taiwan's TWSE Capitalization Weighted Stock Index declined by 388.06 points, or 1.73 percent, to 22,071.09.

Oceania

Australia's S&P/ASX 200 dropped 72.20 points, or 0.91 percent, to 7,890.10, while the All Ordinaries declined by 88.30 points, or 1.08 percent, ending at 8,103.40.

In New Zealand the S&P/NZX 50 Index Gross decreased by 105.00 points, or 0.84 percent, to 12,410.97.

Middle East markets

Israel's TA-125 decreased by 10.49 points, or 0.42 percent, ending at 2,516.74.

In Egypt the EGX 30 Price Return Index fell by 201.80 points, or 0.65 percent, to 30,935.20.

Africa

South Africa's Top 40 USD Net TRI Index saw a modest increase of 14.32 points, or 0.30 percent, closing at 4,710.89.

Outlook

The market downturn was largely attributed to President Trump's decision to double tariffs on Canadian steel and aluminum imports to 50 percent, escalating trade tensions and fueling fears of a potential recession. This move led to significant declines in major indices, with the S&P 500 entering correction territory after falling 1.5 percent on Tuesday, accumulating a loss exceeding 10 percent from its all-time high reached less than three weeks ago.

Investors are closely monitoring developments in trade policies and their potential impact on the global economy, as uncertainty continues to drive market volatility.

Related story:

Monday 10 March 2025 | U.S. stock markets shatter, Dow Jones sheds 890 points | Big News Network