So much for the art of the deal.
After U.S. stocks rallied Monday, following President Trump’s announcement that tariffs on $200 billion in annual imports from China would not be lifted to 25% from 10% for at least 90 days, stocks fell sharply Tuesday.
Trump assigned himself the nickname “Tariff Man,” while saying via Twitter that a deal with China would “probably” happen. Alas, the stock market doesn’t like uncertainty.
The Dow Jones Industrial Average DJIA, -3.10% fell 799 points, or 3.1%, while the S&P 500 Index SPX, -3.24% was down 3.2%, and the Nasdaq Composite Index COMP, -3.80% took the worst hit of 3.8%.
A flight to safety ensued, meaning heavy demand for U.S. paper, with the yield on the 10-year Treasury TMUBMUSD10Y, +0.00% falling six basis points to 2.91%. Only a month ago, 10-year notes were yielding 3.20%.
Among the S&P 500, the semiconductors and semiconductor manufacturers industry group was hit particularly hard,with a 5.1% decline.