Wall Street Plummets as Tariff Fears Intensify: Full Details

U.S. stock indexes tumbled on Tuesday as fears of impending tariffs from the Trump administration rattled investors, overshadowing economic data and leaving Wall Street on edge.
Manufacturing Contracts, Inflation Soars

The Institute for Supply Management’s manufacturing index fell to 49 in March, signaling contraction after two months of growth. Meanwhile, factory gate inflation surged to its highest level in nearly three years, amplifying concerns about tariff-induced price hikes. A labor report showed job openings in February fell to 7.568 million, underscoring economic jitters.

President Donald Trump is set to unveil sweeping "reciprocal tariffs" on Wednesday, matching U.S. duties to those of trading partners. The White House is reportedly eyeing 20% levies on most imports. "Investors are on the sidelines because it’s impossible to get a clear read on the economy until these tariffs are finalized," said Peter Andersen of Andersen Capital Management.

"Investors are on the sidelines because it's impossible to get any kind of clear compass reading on the direction of the economy until these tariffs are finalized," said Peter Andersen, founder of Andersen Capital Management.
"The market is going to sway back and forth, but with a bias to the negative side, because this is making it very difficult for CEOs of companies to make any kind of estimates."

Tech, Healthcare Stocks Hammered

The Dow Jones Industrial Average dropped 434.77 points, or 1.03%, to 41,567.33. The S&P 500 fell 40.74 points, or 0.73%, to 5,571.11, while the Nasdaq Composite lost 89.91 points, or 0.52%, to 17,209.09. Johnson & Johnson plummeted 4.9% after a judge rejected its $10 billion proposal to settle talc-related lawsuits, dragging the healthcare sector down.

As equities sank, investors sought refuge in gold and bonds. Goldman Sachs raised the likelihood of a U.S. recession to 35%, anticipating further rate cuts this year. With tariffs on imported aluminum, steel, and cars already in effect, markets brace for more disruption.

With Reuters Inputs