Hadisur Rahman, JadeTimes Staff
H. Rahman is a Jadetimes news reporter covering Business
Wall Street’s major indexes fell on Tuesday as investor sentiment was rattled by fresh tariff concerns from U.S. President Donald Trump and ahead of a closely watched interest rate decision by the Federal Reserve.
Trump announced late Monday that new pharmaceutical tariffs would be introduced within two weeks, escalating trade tensions that have kept global markets on edge in recent months. The prospect of additional levies sent shares of major drugmakers tumbling, with Eli Lilly and Merck both dropping over 3%, and Pfizer declining 1.7%.
Despite an early selloff, markets pared some losses after Treasury Secretary Scott Bessent indicated that some trade agreements could be announced later this week. “The market is going to seesaw depending on tariff discussions,” said Mark Hackett, chief market strategist at Nationwide. “Until we get some news of actual deals being signed, we’re going to be susceptible to these fluctuations.”
The Federal Reserve commenced its two-day policy meeting Tuesday. While no rate change is expected, market participants are eager for any signals on future monetary policy, particularly amid slowing growth and persistent trade-related volatility. Traders are currently pricing in a 25-basis-point cut in July, according to data from LSEG.
At 11:42 a.m. ET, the Dow Jones Industrial Average was down 168.75 points (0.40%) at 41,053.76. The S&P 500 declined 20.39 points (0.36%) to 5,629.99, while the Nasdaq Composite fell 90.30 points (0.51%) to 17,753.95. Most S&P 500 sectors were in negative territory, with healthcare the worst performer, sliding 1.7%.
One of the day’s few bright spots was Constellation Energy, which surged 9.8% following strong quarterly results, helping lift the utilities sector by 1.5%.
On the downside, Palantir Technologies saw its shares plummet 12.5% after posting a modest revenue beat and in-line profit that failed to impress investors. Similarly, DoorDash fell 7.2% following the announcement of its acquisition of British rival Deliveroo in a deal worth approximately £2.9 billion ($3.86 billion), alongside a quarterly revenue miss.
Ford Motor reversed earlier losses and rose about 4% in volatile trading after suspending its annual outlook. Despite the uncertainty, analysts noted that Trump’s recent positive remarks on the auto industry offered a boost to sentiment around the stock.
Meanwhile, the U.S. trade deficit hit a record high of $140.5 billion in March, as businesses rushed to import goods amid growing trade uncertainty.
Declining stocks outnumbered advancers by a 1.12-to-1 ratio on the NYSE and 1.62-to-1 on the Nasdaq. The S&P 500 recorded seven new 52-week highs and six new lows, while the Nasdaq logged 17 new highs and 75 new lows.
