Stocks wobbled on Tuesday, as the Trump administration’s chaotic tariff rollout continued to spur swings in the markets.
The S&P 500 dipped 0.2 percent Tuesday afternoon after inching higher in the morning, and the technology-heavy Nasdaq also posted a slight loss. President Trump’s whipsawing tariff policies are still driving sentiment on Wall Street, especially in sectors facing the threat of more levies or potential reprieves.
A Bank of America survey released on Tuesday showed that in the past two months, global investors have cut their U.S. stock holdings by a record amount, and a record number of managers reported plans to continue slashing their holdings. Investors think the potential for a recession spurred by the Trump administration’s trade war poses a major risk to markets, the survey found.
Here’s what else to know:
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Bank stocks rose on Tuesday, as major U.S. lenders reported their latest earnings. Bank of America surpassed Wall Street’s profit and revenue expectations, and its shares rose more than 4 percent by Tuesday afternoon. Citigroup’s profits also beat estimates, sending its stock more than 3 percent higher.
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Tariff threats are taking center stage in the pharmaceutical and technology sectors, after the Trump administration on Monday took steps that appeared likely to result in new tariffs on pharma products and semiconductors. Shares in the drugmaker Eli Lilly inched down in afternoon trading, while shares in Novartis were slightly higher. The stock price for the chip giant Nvidia was up roughly 1.5 percent by Tuesday afternoon, after the company on Monday said that it would invest in artificial intelligence infrastructure in the United States.
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Shares in Boeing, the aviation giant, fell more than 1 percent by Tuesday afternoon following a report from Bloomberg News that China had instructed its airlines to halt deliveries of Boeing planes after the Trump administration imposed steep tariffs on Chinese goods.
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In the auto industry, shares in General Motors, Ford Motor and Stellantis — which jumped on Monday after Mr. Trump signaled that he might offer car companies some relief from tariffs — were mixed on Tuesday morning. Stock prices for both General Motors and Ford both fell more than 1 percent, while Stellantis dipped a more modest 0.8 percent in afternoon trading. The sector, which is grappling with a 25 percent tariff on imported vehicles, is bracing for new levies on imported car parts.
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The U.S. dollar, long a haven in global financial markets, has been falling against other major currencies. But an index that tracks the currency against a basket of major trading partners stabilized early Tuesday, ending a five-day slide.
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The U.S. junk-bond market on Tuesday saw its first offering in almost two weeks, a sign of stabilization and renewed assurance following bouts of volatility. A developer of a liquefied natural gas facility is offering eight-year and 10-year bonds, according to Bloomberg News.
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On Tuesday, investors also weighed indications of potential trade deals with Britain and the European Union. Vice President JD Vance predicted that Mr. Trump would reach a deal with Britain, and said the White House was working closely with its prime minister, Keir Starmer, and his government. This week, Mr. Trump said that the European Union was “trying to come to the table” for trade talks; and on Tuesday, the E.U. representative Olof Gill characterized the 27-nation bloc as “a best friend, not someone taking advantage.”
