Wall Street inches higher after tariff-induced anxiety sparks another selloff
Business
Wall Street inches higher after tariff-induced anxiety sparks another selloff
NEW YORK (AP) - Wall Street inched higher Tuesday following after a big selloff to start the week that was spurred by the potential economic damage from President Donald Trump’s tariffs.
Futures for the S&P 500 rose 0.5% before the bell, while futures for the Dow Jones Industrial Average gained 0.4%. Nasdaq futures rose 0.6%
Early gainers Tuesday included Southwest Airlines, which jumped 7.3% in premarket after the low-cost airline announced it would implement bag fees for travelers who are not members of their rewards program.
Most airlines are down sharply before the opening bell after Delta Air Lines slashed its first-quarter forecast, citing weakening demand. Hotels, cruise lines and online travel bookers also slid early Tuesday.
Tesla took back small portion of Monday’s big losses, rising 2.7%. Investors have grown increasingly pessimistic about the Elon Musk-owned electric car company as sales fall in the U.S. and abroad. Its shares tumbled more than 15% Wednesday, with many analysts blaming the company’s recent sales slump on Musk’s role in President Trump’s government downsizing efforts and his broader embrace of far-right politics around the globe.
Markets will be focused on Washington as well Tuesday when a government funding bill is expected to come to a vote in the House of Representatives. The bill’s passage would avoid a partial government shutdown and keep federal agencies funded through September, but Republicans will need overwhelming support from their members in both chambers — and some help from Senate Democrats — to get the bill to President Donald Trump’s desk.
Asian benchmarks skidded as worries grew over how sharply higher tariffs will hurt exporters in the region.
Japan’s benchmark Nikkei 225 sank 0.6% to 36,793.11, its lowest close in six months but up from a more than 2% loss earlier in the day.
China’s Shanghai Composite index picked up 0.4% to 3,379.83 as the country’s annual national congress wrapped up its annual session with some measures to help boost the slowing economy.
In Hong Kong, the Hang Seng was nearly unchanged at 23,782.14.
Australia’s S&P/ASX 200 lost 0.9% to 7,890.10. South Korea’s Kospi declined 1.2% to 2,537.60.
“Heightened anxiety surrounds both existing and incoming U.S. tariffs, along with retaliatory measures from trading partners, and China’s newly effective tariffs will continue to weigh on equities,” said Anderson Alves, a trader at ActivTrades.
