US actions fell on Tuesday when investors digested new economic data, as well as Friday’s decision that most specific tariffs in President Donald Trump’s country are illegal.
The Nasdaq compound slid more than 1.5% and the S&P 500 fell more than 1.3% from the midday negotiation. The Dow Jones industrial average also fell more than 500 points.
Several Wall Street analysts raised concerns on Tuesday morning about the potential that more than $ 120 billion in tariff revenues received so far this year could be returned. Trump’s tariffs will remain in force for now as the legal process is developed and a lower court reconsiders the case.
The yields of the United States, already high by the broadest investors, care about debt levels and economies in other places, especially in Europe, increased up to 4.97% for a bonus of the US government bonus. UU. And 4.30% for 10 years.
The higher the treasure moves, the more it costs the government to request money. In a scenario in which tariff income must be reimbursed to consumers and companies, the United States may need to issue more treasure bonds to those highest yields to pay reimbursements.
The secretary of the Treasury, Scott Besent, said on Monday that the administration expected the Supreme Court to defend Trump’s rates, but was also preparing other ways to deploy specific rates of the country.
This scenario could also even more emphasize the country’s financial situation and the $ 37 billion in debt.
September is typically the worst month for shares, which have recently reached maximum records. The renewed tariff uncertainty also comes along with new data that shows that the manufacturing sector of the United States contracted for sixth consecutive month.
In his survey, the Supply Management Institute observed comments from a survey of the truck industry who said that the industry “continues to contract” and is “much worse than the great recession of 2008-2009”.
A company of the food and beverage industry also told ISM that “everything … is about to be significantly more expensive” due to high rates, such as 50% applied to Brazilian goods.
“Tariffs continue to wreak havoc on planning/programming activities,” said a computer industry company.
The main companies are also playing alarm on consumers.
Speaking about CNBC, the McDonald’s CEO, Chris Kempczinski, said Tuesday that the fast food giant has observed “a two -level economy” recently with lower and medium income consumers “feeling under a lot of pressure at this time.”
