[New York Stock Market] Two Consecutive Days of Decline Amid Trump Tariff Uncertainty

Trump Announces Additional Tariffs on Canada, Triggering Rollercoaster Market
Tesla and Nvidia Rebound on Bargain Hunting
Market Focuses on U.S. February CPI

The New York stock market fell for the second consecutive day on the 11th (local time), following a sharp decline the previous day, due to U.S. President Donald Trump's threat to impose additional tariffs. This is interpreted as a result of investors' weakened sentiment amid economic uncertainty ahead of the imposition of tariffs on steel and aluminum.

On this day, the Dow Jones Industrial Average (Dow) closed at 41,433.48, down 478.23 points (-1.14%) from the previous session. The S&P 500, which focuses on large-cap stocks, closed at 5,572.07, down 42.49 points (-0.76%), and the tech-heavy Nasdaq closed at 17,436.10, down 32.22 points (-0.18%).

The New York stock market experienced a rollercoaster session. It started slightly higher in the morning, but the market wavered after President Trump announced additional tariffs on Canadian steel and aluminum entering the U.S. The S&P 500 at one point during the session widened its losses to 1.5% (5,528.41), falling more than 10% from its peak.

Later, after Ontario's provincial government in Canada announced a temporary suspension of a 25% surcharge on electricity rates transmitted to the U.S. in response to Trump's additional tariff threat, the market began to rise again, reducing its losses by the close.

Major tech stocks that had plunged the previous day, such as Tesla (3.79%), Nvidia (1.66%), and Meta (1.29%), rebounded as bargain hunting emerged.

Delta Air Lines plunged 7.25% after lowering its domestic flight performance outlook due to decreased U.S. demand, while low-cost carrier Southwest Airlines rose 8.34% after discontinuing its free baggage policy. Other travel-related stocks, Airbnb and Disney, fell 5.08% and 5.03%, respectively.

President Trump's aggressive tariff measures, along with recent statements from the Trump administration, have fueled investors' fears about the economy. CNBC commented, "President Trump appeared unfazed by the recent stock market declines." When asked about the continuously falling stock market, he responded, "Markets go up and down. But as you know, we have to rebuild our country," signaling his intention to push forward with his policies despite the economic impact of tariffs.

Investors are now focused on the U.S. Consumer Price Index (CPI) for February, scheduled to be released on the 12th. With widespread concerns about an economic slowdown, if the CPI exceeds expectations, investor sentiment is expected to worsen further.

Ross Mayfield, an investment strategy analyst at Baird Private Wealth Management, said, "The Fed has enough funds to cut interest rates and stimulate demand if the economy shows significant signs of slowing. However, they can only do so when they feel inflation expectations and inflation are well anchored."