US stocks struggled to rebound on Tuesday, with major indexes extending losses amid lingering concerns over the impact of President Donald Trump’s tariffs on the economy.
The Dow Jones Industrial Average slid 0.6% to 41,672.53, while the S&P 500 Index retreated 0.1% to 5,607.05. The Nasdaq Composite Index, however, picked up 0.4% to 17,533.51.
Investors remain worried that Trump’s tariffs could tip the economy into a downturn, fueling concerns over a potential recession in the world’s largest economy.
“As of now, things don’t look much better for stocks following a period in which things have gotten progressively worse,” said Patrick O’Hare, an analyst
Analysts say a catalyst is needed to reverse the downward trend in stock prices. Consumer inflation data due Wednesday may provide some optimism, as it could influence the Federal Reserve’s decision on interest rates.
The Fed is expected to hold interest rates steady in its first interest-rate decision of the year on Wednesday. The central bank has a dual mandate to tackle both inflation and employment, and has cut rates by a full percentage point over three consecutive meetings at the end of last year.
Delta Air Lines shares fell over 3.3% after the carrier revised its earnings outlook downward due to weaker demand. Other major airlines also saw their shares decline.
Market volatility has resulted in a choppy trading session, with investors awaiting a clear direction on the economy. The uncertainty surrounding the US-China trade talks and the impact of tariffs on corporate earnings has contributed to the market’s decline.
The S&P 500 Index has fallen over 3% in the past week, with the Dow Jones Industrial Average declining over 2%. The Nasdaq Composite Index has lost around 4% in the same period.
Investors will be closely watching the consumer inflation data due Wednesday, as well as the Fed’s interest-rate decision, for any signs of a potential turnaround in the market.
