U.S. stocks plunged Tuesday as President Donald Trump‘s tariffs on key trade partners came into effect, prompting retaliatory measures and intensifying global trade tensions.

The Dow Jones Industrial Average fell 1.8%, extending Monday’s sharp decline of nearly 650 points and heading towards its worst performance of 2025. The S&P 500 decreased by 1.7%, while the Nasdaq Composite dropped 1.9%, putting it on course to enter correction territory, defined as a 10% drop from its recent peak. 

Read More: Trump Tariffs Will Raise Prices ‘Within Days,’ Target CEO Says

Affected countries announced retaliatory measures, further dampening investor sentiment.

China announced retaliatory tariffs of up to 15% on certain U.S. products, including chicken, wheat, corn, and cotton. Canadian Prime Minister Justin Trudeau declared that Canada would impose a 25% tariff on U.S. goods. Mexican President Claudia Sheinbaum stated that Mexico would respond with tariffs and other measures, to be announced on Sunday.

The yield on the US 10-year Treasury note fell to 4.13% on Tuesday, its lowest level since October 2024. Markets are now pricing in three quarter-point rate cuts by the Federal Reserve in 2025, according to data from CME FedWatch. The iShares 20+ Year Treasury Bond ETF TLT slipped 0.58%. 

Natural gas futures rose more than 8% on Tuesday, above $4.45/MMBtu, the highest since December 2022. Stockpiles remain below the five-year average due to earlier extreme cold in the U.S. while LNG export flows have reached record levels. The United States Natural Gas Fund LP UNG ETF climbed 8.5%. 

Bitcoin BTC/USD continued Monday's decline to trade below the $84,000 mark, leading crypto markets lower. 

Tuesday’s Performance In Major U.S. Indices, ETFs

Major Indices	Price	1 day % chg.
Nasdaq 100	18,175.89	-0.99%
S&P 500	5,772.73	-1.32%
Dow Jones	42,535.92	-1.52%
Russell 2000	2,064.42	-1.81%

According to Benzinga Pro data:

• The SPDR S&P 500 ETF Trust SPY was down 1.24% to $576.36.
• The SPDR Dow Jones Industrial Average DIA was down 1.45% at $425.81. 
• The tech-heavy Invesco QQQ Trust Series QQQ fell 0.8% to $493.08. 
• The iShares Russell 2000 ETF IWM slid 1.1% to $205.00.
• The Consumer Discretionary Select Sector SPDR Fund XLY was down 2.17% to $207.38. 
• The Energy Select Sector SPDR Fund XLE was down 1.06% to $86.87. 

Tuesday's Stock Movers: 

Shares of Okta, Inc. OKTA, bucked the market trend, surging 18% after the company reported better-than-expected financial results on Monday.

Stocks reacting to company earnings reports included: 

• Target Corp. TGT 
• Best Buy Co., Inc. BBY 
• B. Riley Financial, Inc.RILY 
• Okta, Inc. OKTA 
• NuScale Power Corp. SMR 
• GitLab Inc. GTLB 
• Curaleaf Hldgs Inc. CURLF 
• Dave Inc. DAVE 
• Emergent BioSolutions Inc.  EBS 
• AST SpaceMobile, Inc. ASTS 
• Concentra Group Holdings Parent, Inc. CON 

Companies reporting after Tuesday's closing bell include: 

• ChargePoint Holdings, Inc. CHPT
• Ross Stores, Inc. ROST
• Rigel Pharmaceuticals, Inc. RIGL
• CrowdStrike Holdings, Inc. CRWD
• Box, Inc. BOX
• Sociedad Quimica y Minera S.A. SQM
• AeroVironment, Inc. AVAV
• Stem, Inc. STEM

Read Next: 

• Markets Tank After Trump Confirms More Tariffs: Here’s What Wall Street Is Saying

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