The US markets ended in negative terrain on Tuesday, after witnessing volatile session, as worries about global economic outlook, and fears of a possible recession in the U.S., due to the trade war, hurt investor sentiment. Traders were cautious with the U.S. President Donald Trump’s statement that he was reconsidering plans to double tariffs on Canadian steel and aluminum to 50%. Canada, which had earlier said it would impose tariffs on electricity exports to the U.S., agreed to suspend the 25% hike after agreeing to meet on Thursday to discuss a pathway to renew the new North American trade agreement. Meanwhile, a senior White House official has said the higher tariff on Canadian steel and aluminum imports into the U.S. will not become effective tomorrow.
Traders overlooked a report released by the Labor Department showed job openings in the U.S. increased by more than expected in the month of January. The Labor Department said job openings climbed to 7.74 million in January from a downwardly revised 7.51 million in December. Street had expected jobless claims to inch up to 7.63 million from the 7.60 million originally reported for the previous month. Markets now await U.S. reports on consumer and producer price inflation, as well as readings on consumer sentiment and inflation expectations this week for further direction. Meanwhile, investors now expect the Fed to cut interest rates by 88 basis points this year, compared to earlier expectations for 75 basis points cut, according to LSEG data.
Dow Jones Industrial Average slipped 478.23 points or 1.14 percent to 41,433.48, Nasdaq decreased 32.22 points or 0.18 percent to 17,436.1 and S&P 500 was down by 42.49 points or 0.75 percent to 5,572.07.
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