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Stocks dropped on Tuesday as investors digested cautious commentary from Federal Reserve Chairman Jerome Powell on interest rates. Concerns remain over the direction of the economy amid U.S. tariffs and the possible escalation of a global trade war.
The Dow Jones Industrials fell 36.51 points, to 44,443.90
The S&P 500 slid 4.25 points to 6,062.19
The tech-heavy NASDAQ dipped 11.57 points to 19,702.70.
Apple gained more than 2% on a report that the company is partnering with Alibaba to develop AI features for iPhone users in China, curbing the market’s losses. Coca-Cola also jumped 3% on a strong earnings report.
Powell earlier addressed the Senate Banking Committee and signaled the Fed does not need to move quickly to ease monetary policy.
Trump on Monday signed new tariffs on all steel and aluminum imports to the U.S. The European Union responded by saying it would retaliate with levies of its own if the U.S. tacks on tariffs against products from the country bloc.
The president previously said he would demand lower interest rates, but Treasury Secretary Scott Bessent said last week that the White House would not be pressuring the Fed to cut its benchmark borrowing rate and instead will be looking for the 10-year Treasury yield to fall as the administration institutes deregulation and spending cuts to control inflation.
“Not only is it difficult to estimate the true impact of the new tariffs already
Prices for the 10-year Treasury retreated slightly, raising yields to 4.55% from Monday’s 4.5%. Treasury prices and yields move in opposite directions.
Oil prices tacked on 66 cents to $72.98 U.S. a barrel.
Prices for gold tailed off $9.90 an ounce to $2,924.50 U.S.
