The Trump Administration has decided to pull the leash on the much-discussed tariffs on Canada and Mexico, putting these taxes on hold for a period of one month.
Trump’s Tariff War
This comes to pass after Trump initiated the imposition of tariffs against China, Mexico and Canada, with the imposition of 10 per cent, 25 per cent and 25 per cent, respectively on goods coming from these countries.
While US markets reacted poorly to this development, closing in red, the decline could have been much worse had it been for Trump to stick to his guns.
It needs to be noted that the 10 per cent tariffs on China continue to remain in force, as it is expected to go ahead, as according to plan.
Dow Jones Industrial Average
When we look at the marquee indices at the New York Stock Exchange (NYSE), the oldest of them all, Dow Jones had the most interesting story to tell with an overall decline of 122.75 points or 0.28 per cent by the end of the day.
However, this only came to pass after recording monumental losses of over 660 points in the early hours of the day’s trade in the US.
S&P 500
The story was no different for the S&P 500 as the benchmark index saw a n exodus of a greater value at the beginning of the day, compared to its status by the end of the day.
The index closed the day’s proceedings on 5,994.57 points, losing 0.76 per cent or 45.96 points in the bargain.
Nasdaq Composite
The tech-heavy Nasdaq Composite, dealing with its own AI and tech stocks-related problems, was the biggest loser amongst the indices as the index dropped to 19,391.96, after a major decline of 1.20 per cent or 235.49 points.
Here again, the index declined in the early hours, to steady its ship later on as the day’s trade progressed further.
