Major markets erased all gains made on Tuesday following another day of global uncertainty over tariffs imposed by President Donald Trump.
The S&P 500 closed down 1.4%, and the Dow Jones Industrial Average lost 0.97% on the day. The Nasdaq was down 2.15%.
Markets had surged earlier in the day, with the Dow opening on Tuesday 862 points higher than when markets closed on Monday.
But since last week, the S&P 500 has lost nearly 700 points and the Dow is down more than 4,000 points.
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The markets steepened their plunge after President Donald Trump announced a broad set of tariffs. Thursday of last week marked the beginning of 10% tariffs on nearly all imported goods into the U.S. He also established what he described as "retaliatory" tariffs against dozens of countries, which are set to begin this week.
An overnight uptick in the stock market came after Treasury Secretary Scott Bessent suggested President Trump is open to negotiating tariffs. The president had previously suggested that he was unwilling to negotiate.
"As I advised on many shows on April 2, I suggested that the foreign officials keep you cool, that you do not escalate and come to us with your offers on how you’re going to drop tariffs, how you’re going to drop non-tariff barriers, how you’re going to stop your currency manipulation, how you’re going to stop the subsidized financing, and at a point, President Trump will be ready to negotiate," he told Fox Business after the markets closed on Monday.
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Bessent added, "It is my hope that through good negotiations, all we will do is see levels come down."
One country showing an unwillingness to negotiate is China. The nation's Commerce Ministry said China will “fight to the end” to protect its own interests, stating that the tariffs are “groundless and a typical unilateral bullying practice.”
On Tuesday President Trump announced the U.S. would commit to a total 104% tariff on imports from China, starting at midnight on Wednesday.
