US Stocks Dive as Trump's Tariffs and China Chip Curbs Spark Market Sell-Off
US equities plummeted on Tuesday as President Donald Trump's threats to reimpose tariffs and a potential crackdown on China's semiconductor industry dampened investor sentiment and diminished hopes for interest rate cuts.
Consumer Confidence Tumbles
Consumer confidence witnessed a significant drop in February, marking its largest monthly decline in over four years. Elevated 12-month inflation expectations and growing recession fears contributed to the pessimistic outlook.
Tech Sector Woes
The Nasdaq Composite (^IXIC) lost ground by around 1.6%, extending Monday's tech-led sell-off. The S&P 500 (^GSPC) slipped roughly 0.7%, while the Dow Jones Industrial Average (^DJI) declined by approximately 0.1%.
Cryptocurrency Plunge
Bitcoin (BTC-USD), the world's largest cryptocurrency, fell below $90,000 for the first time since November. Ethereum (ETH-USD) also experienced a significant drop, losing over 10% to trade under $2,400. Crypto-related stocks faced pressure, with Coinbase (COIN) and MicroStrategy (MSTR) seeing declines.
Trump's Trade Threats and China Chip Curbs
Trump's announcement that tariff negotiations with Mexico and Canada would proceed has raised concerns about their impact on economic growth. The Trump administration is also reportedly preparing stricter chip export restrictions on China, further fueling market anxiety.
Chipmaker Nvidia Faces Headwinds
Nvidia (NVDA) was in focus ahead of its earnings release on Wednesday, with the company facing challenges from tariffs and export controls.
Home Depot's Mixed Earnings
Home Depot (HD) reported fourth-quarter revenue that surpassed Wall Street's low expectations, although its earnings missed estimates.
Key Economic Data and Earnings
* FHFA House Price Index (December)
* S&P CoreLogic CS 20-City (December)
* Conference Board Consumer Confidence (February)
* Richmond Fed Manufacturing Index (February)
* American Tower (AMT)
* AMC (AMC)
* Cava (CAVA)
* First Solar (FSLR)
* Instacart (CART)
* Intuit (INTU)
* Keurig Dr. Pepper (KDP)
* Krispy Kreme (DNUT)
* Lemonade (LMND)
* Lucid (LCID)
* Planet Fitness (PLNT)
* Workday (WDAY)