NEW YORK – The S&P 500 closed slightly lower in a choppy session on Tuesday as investors awaited clarity on U.S. trade policy after President Donald Trump’s latest tariff warnings rattled markets and overshadowed optimism around ongoing negotiations.
Wall Street had tumbled on Monday after Trump threatened sweeping new tariffs on imports from key trade partners, including Japan and South Korea, set to take effect in August. While Tuesday’s losses were milder, the S&P 500 and Nasdaq fluctuated between gains and losses as traders weighed conflicting signals on trade talks.
Trump escalated tensions further by announcing a 50% tariff on imported copper and signaling impending levies on semiconductors and pharmaceuticals. Despite claiming progress in talks with the EU and China, he warned that a tariff letter to Brussels could be sent within days.
The mixed signals left markets in limbo, with investors bracing for potential disruptions to global supply chains. The Dow Jones Industrial Average and Nasdaq also struggled for direction, reflecting lingering uncertainty over how the escalating trade disputes could impact corporate earnings and economic growth.