The drops follow a steep sell-off Monday. Altogether, the decline has wiped out all of the markets’ gains since President Donald Trump’s election in November.
The Trump administration imposed tariffs on imports from Canada and Mexico starting Tuesday and doubled tariffs against imports from China. All three countries announced retaliatory actions, sparking worries about a slowdown in the global economy.
The S&P 500 fell 1.2%, with more than 80% of the stocks in the benchmark index closing lower. The Dow Jones Industrial Average slid 1.6%.
The Nasdaq composite slipped 0.4%. The tech-heavy index briefly reached a 10% decline from its most recent closing high, which is what the market considers a correction, but gains for Nvidia, Microsoft and other tech heavyweights helped pare those losses.
Financial stocks were among the heaviest weights on the S&P 500 index. JPMorgan Chase fell 4% and Bank of America lost 6.3%.
Markets in Europe …