The S&P 500 slid in a head-spinning session for traders as they grappled with new tariffs proposed by President Donald Trump that were in flux throughout most of Tuesday. The trade policy uncertainty has brought the benchmark to the brink of a correction, which is defined as a decline of 10% from its high.

The S&P 500 ended the session 0.76% lower, falling to 5,572.07. At its low of Tuesday's session, the index was 10% below its record close. The Dow Jones Industrial Average lost 478.23 points, or 1.14%, to close at 41,433.48. The Nasdaq Composite slipped 0.18%, closing at 17,436.10.

The S&P 500 was in the green at one point during the trading session before Trump declared on Truth Social that Canadian steel and aluminum duties would double to 50% from 25%, effective Wednesday. The president made the move in response to Ontario Premier Doug Ford's surcharge on electricity exported to the U.S.

Later in the day, Ford said he was temporarily suspending the 25% surcharge after talking with Commerce Secretary Howard Lutnick.

Finally, top Trump trade advisor Peter Navarro said on CNBC on Tuesday afternoon that Trump would not hike the tariffs on Canadian steel and aluminum to 50%. The 25% duty that was originally planned, however, would still take effect.

This is the latest in a series of disorderly trade policy moves that have rattled corporate and consumer confidence and weighed on markets over the past three weeks.

On Monday, the Nasdaq saw its worst day since September 2022, dropping 4%. The 30-stock Dow lost nearly 900 points. Citigroup this week lowered its rating on U.S. stocks to neutral from overweight, pointing to a "pause in U.S. exceptionalism" as the reason.

"There's clearly a tolerance for pain on the part of the administration in pursuit of trade goals that are not necessarily entirely economic in nature," said Ross Mayfield, Baird investment strategist. "At this point I'm still in the camp that we're not on the doorstep of a recession, but maybe a slowdown or growth scare. Non-recession sell-offs tend to be shorter and milder than the recessionary ones."

Delta Air Lines added to recession worries Tuesday as the airline slashed its earnings outlook due to weaker U.S. demand, pushing the stock down 7.3%. Other travel-related stocks followed suit with Disney and Airbnb both off 5%.

Along with haphazard tariff moves, comments from the administration in recent days have stoked investors' fears about the economy. On Tuesday, Trump again appeared unperturbed by the stock market's recent slides. "Markets are going to go up and they're going to go down but, you know what, we have to rebuild our country," he said when asked about the stock market, according to the White House pool report.

Investors are eagerly anticipating the release of February's consumer price index due Wednesday.

"It'll be really important that we don't see an upside surprise on CPI because at this point, the Fed does have plenty of dry powder to step in to cut rates and try to boost demand if the economy were to meaningfully slow," Mayfield added. "But they can only really do that if they feel that inflation expectations and inflation are well anchored."

Stocks close Tuesday's session lower

Stocks closed lower on Tuesday after a volatile session, extending their losses from Monday.

The S&P 500 slipped 0.76%, closing at 5,572.07. The Dow Jones Industrial Average tumbled 478.23 points, or 1.14%, finishing at 41,433.48. The Nasdaq Composite slipped 0.18% and ended at 17,436.10.

— Lisa Kailai Han

Market uncertainty means investors should be cautious on growth, Piper Sandler says

The higher levels of uncertainty currently plaguing the market could lead to weaker GDP, jobs and consumption, Piper Sandler wrote in a Monday note.

With this in mind, investors should tread carefully going forward, said Nancy Lazar, the firm's chief global economist.

"The bad news is that Uncertainty is at an all-time high (ex Covid), and is historically correlated with bad eco outcomes. The good news is Uncertainty always comes back down. But near term, it pays to be cautious on growth … until it comes down," she wrote.

In the same note, Lazar said investors should also heed President Trump's weekend comments.

"Trump warned of a 'little disturbance' in his speech to Congress, and on Sunday refused to dismiss the possibility of a recession. Treasury Sec. Bessent says the economy is heading for a 'detox period,'" she added. "Don't fight Washington."

— Lisa Kailai Han

Trump: 'Markets are going to go up and they're going to go down'

President Trump again appeared to shrug off the stock market's declines on Tuesday.

"Markets are going to go up and they're going to go down but, you know what, we have to rebuild our country," Trump said when asked about the stock market, according to the White House pool report.

Before the last few weeks, some on Wall Street were counting a possible "Trump put," meaning the White House would be responsive to the market and take steps to limit sell-offs. However, Trump has said recently that he is not looking at the stock market and that the economy is going through a transition period.

— Jesse Pound

Cheaper stocks may be a buy at these levels, strategist says

Large tech stocks have been leading market moves through much of the recent sell-off, but investors should consider taking advantage of other groups that are getting caught in the selling, said Angelo Kourkafas, investment strategist at Edward Jones.

"I think the theme of the laggards catching up is still in play. A lot of the domestic midcaps, financials, things that are less exposed to trade … still have that catch-up potential and valuation discount," Kourkafas said.

Of course, some of those cheaper stocks are closely tied to the economic environment. Andrew Smith, chief investment officer of Delos Capital Advisors in Dallas, said he wanted to see signs of economic strength before switching up his currently defensive portfolio.

"Until we get confirming economic data from the leading economic side, we're in the wait and hold pattern. Right now all of our [purchasing managers' indexes] are in expansion territory — they have moderated, but they're not decelerating or in negative growth territory, and that's a positive sign for us. In April, if it shows a more meaningful move higher, we'll start getting more aggressive in our cyclical and value allocations," Smith said.

— Jesse Pound

Wolfe Research sees elevated recession odds of between 30% and 35%

Wolfe Research believes the risks of a recession are rising.

In a Tuesday note, the firm's chief economist, Stephanie Roth, wrote that she had revised down her 2025 estimates for U.S. growth from 2.2% to 1.6%. Roth cited surprises out of Washington as the reason, including "earlier-than-anticipated tariff policy, with DOGE layoffs and immense policy uncertainty exacerbating the economic hit."

"Following our revision, we were asked whether this may ultimately end the cycle. Our base case is that the cycle will not end, as the economy remains on firm enough footing. That said, we see elevated recession odds of around 30-35%, roughly double the 15% unconditional probability of recession (likelihood of recession at any given time) but still far from the central case," she added. "It certainly feels like the market is pricing an elevated chance the economic cycle is coming to a close. … While the S&P 500 hasn't fully reflected our recession expectations, the Russell 2000 and homebuilders have."

— Lisa Kailai Han

Potential government shutdown adding to market nerves

Amid signs of weakening consumer and business sentiment from President Trump's tariffs, the possibility of a government shutdown later this week is also weighing upon sentiment, per UBS.

"Markets are questioning the notion that the Trump administration would adapt policies in response to equity market volatility or economic growth concerns," Mark Haefele, Global Wealth Management chief investment officer, wrote in a note on Monday.

Haefele added, "Investor nerves are also likely being added to by the potential for a US government shutdown this weekend, and more headlines about 'reciprocal' tariffs coming out on 2 April."

The House of Representatives is planning a vote Tuesday for a stopgap funding bill.

— Hakyung Kim

Shares of Kohl's on pace for worst day on record

Retail stock Kohl's plunged 26% on Tuesday, pacing for its worst day on record back to the company's initial public offering in 1992.

The stock's worst day so far was May 30, 2024, when it dropped 22.86%.

Shares of Kohl's fell after the retailer issued disappointing guidance for 2025. However, the company topped its fourth-quarter earnings and revenue estimates.

— Lisa Kailai Han

How far from their all-time highs the major averages have fallen

Here's how far the major averages have fallen from their all-time highs:

• S&P 500: down 9.5% from all-time high of 6,144.15 on Feb. 19, 2025
• Dow Jones Industrial Average: down 8.3% from all-time high of 45,014.14 on Dec. 4, 2024
• Nasdaq Composite: down 14% from all-time high of 20,173.89 on Dec. 16, 2024

— Lisa Kailai Han

We're in the '8th or 9th inning' of a bull cycle, Oppenheimer says

Stocks after Monday's sell-off could be a good spot for a relief rally, but the longer-term outlook does not look as compelling, according to Oppenheimer.

"The caveat is that we think the next market snapback is likely a trade," Ari Wald, head of technical analysis at the firm, wrote Tuesday. "We have less conviction putting long-term money to use in what looks like the 8th or 9th inning of this bull cycle."

— Sarah Min

The market sell-off isn't as dire as it seems, says Deutsche Bank

Deutsche Bank analyst Luke Templeman argues that the continued weakness for U.S. equities this week isn't indicative of both slowing corporate expansion and a looming recession.

"The upshot is that while the US equity market sell-off will undoubtedly make many CEOs nervous, it does not have the hallmarks of prior sell-offs that were actually associated with a material dip in corporate and 'uncontrollable' economic factors," Templeman wrote Tuesday.

"We run the numbers and show that the majority of companies have been relatively resilient in the market this year," he added. "So, even though the market is legitimately worried about very high levels of economic uncertainty at present, it is premature to predict an extended pause in corporate expansion activity and we continue to expect this to pick up materially in H2 of 2025."

— Brian Evans

Stocks making the biggest moves midday

Check out the companies making headlines in midday trading:

• Delta Air Lines — The Atlanta-based carrier tumbled nearly 9% after slashing its first-quarter revenue and earnings guidance, citing weak domestic demand and macroeconomic uncertainty. Delta forecast revenue in the current quarter growing no more than 5% on a yearly basis, down from a January estimate calling for a 6% to 8% rise. The airline also lowered its adjusted earnings forecast to 30 cents to 50 cents per share from a prior range of 70 cents to $1 a share. 
• Verizon Communications — The mobile phone and internet service provider dropped nearly 7% after saying wireless subscriber growth in the first quarter will soften due to off-season promotions by competitors. Verizon is still targeting single-digit growth in annual phone upgrades, seeing a rebound later in 2025.
• Southwest Airlines — The Dallas-based budget airline surged 10% after saying it will start charging for check-in bags and offer a basic economy fare. The changes came after pressure from activist investor Elliott Investment Management.

The full list can be found here.

— Hakyung Kim

Retail ETF XRT hits new 52-week low

The SPDR S&P Retail ETF (XRT) was last trading 2.1% lower on Tuesday and pacing for back-to-back losses.

The exchange-traded fund hit a new 52-week low on Tuesday, marking its lowest level since Feb. 1, 2024. This would be its fourth negative week in a row.

Kohl's was the biggest laggard in the group and hit its lowest level since January 1997. Shares plunged 22% after the retailer issued disappointing guidance for 2025.

Shares of Revolve Group, Foot Locker and American Eagle Outfitters were all trading more than 5% lower.

— Nick Wells, Lisa Kailai Han

14 stocks in the S&P 500 reach new 52-week lows

On Tuesday, 14 stocks in the S&P 500 were trading at new 52-week lows.

Tickers that hit this milestone included:

• T. Rowe Price Group trading at lows not seen since November 2023
• Align Technology trading at lows not seen since April 2020
• Applied Materials trading at lows not seen since December 2023
• Advanced Micro Devices trading at lows not seen since October 2023
• ON Semiconductor trading at lows not seen since August 2021
• Teradyne trading at lows not seen since November 2023
• Host Hotels trading at lows not seen since October 2023
• CSX trading at lows not seen since November 2023
• Hubbell trading at lows not seen since January 2024

On the other hand, just four stocks in the index hit new 52-week highs: CME Group, Bristol-Myers, Cencora and CenterPoint Energy.

— Lisa Kailai Han

Tesla outperforms after Trump post, Morgan Stanley call

Tesla bucked the broader market's downtrend in Tuesday morning trading, buoyed by a Wall Street note and a supportive social media post from President Donald Trump.

Shares of the electric vehicle maker rose more than 1% shortly before 11 a.m. ET, on track to snap a three-day losing streak. By comparison, the S&P 500 and Nasdaq Composite lost 0.8% and 0.4%, respectively.

The stock's outperformance came after Trump posted on Tuesday morning that he planned to purchase a Tesla and blasted a boycott of the brand. Tesla has been under scrutiny as CEO Elon Musk has opined on international politics and was notably tapped to lead Trump's controversial government cost-cutting initiative.

Morgan Stanley analyst Adam Jonas, meanwhile, told clients on Monday that they should buy into Tesla after the stock's steep decline. Shares have plunged about 45% this year, including a slide of more than 15% seen in Monday's session that marked its worst day since 2020.

— Alex Harring

Crypto stocks bounce after sinking to 2022 lows, bitcoin tests $80,000

Crypto stocks bounced after suffering steep declines on Monday.

Coinbase jumped 6% Tuesday after falling to its worst level since July 2022 a day earlier. Robinhood gained 5% after it also fell to a 2022 low. Bitcoin miners broadly were higher, led by Core Scientific with a 6% gain.

Bitcoin was last higher by more than 2% at $80,921.53, according to Coin Metrics. Overnight, it fell as low as $76,583.05, its lowest level since Nov. 10.

"[Bitcoin] is a short term, liquid store of capital and an asset that can easily be temporarily liquidated to draw cash to cover collateral needs," said James Davies, CEO at trading platform Crypto Valley Exchange. "Once other assets that are more impacted are liquidated, the bitcoin trade gets its liquidity back."

"It's become a super cyclical asset — the first to drop with every bad news [event] as a convenient store of cash, but also the first to recover," he added. "This further underlines why its use as a reserve is questionable but shows it's getting more and more FX-like in its action, so adoption is spreading. It would make sense to expect more volatility over the coming months as the world's trade priorities change."

— Tanaya Macheel

Most of the S&P 500 is already in correction territory

The majority of the stocks in the S&P 500 are already in correction territory as the sell-off on Wall Street continues to drag the benchmark closer to that key threshold.

As of Monday's close, 366 S&P 500 components, or 73%, were trading 10% or more below their respective 52-week highs, which means they have already suffered a correction. A total of 203 components closed more than 20% below 52-week highs as of Monday, meaning they are in bear market territory.

— Yun Li

73% of S&P benchmark trades 10% or more below their 52-week highs, as of Monday's close

As of Monday's close, 366 components of the S&P 500, or roughly 73% of the benchmark, were trading 10% or more below their 52-week highs.

A total of 203 companies, or 41% of the S&P 500, closed more than 20% below their 52-week highs.

Also as of Monday, five out of the 11 GICS sectors were trading 10% or more off their 52-week high close. These five sectors included consumer discretionary, technology, communication services, materials and energy.

— Gina Francolla, Lisa Kailai Han

Stocks fall again on Tuesday

Stocks kicked off Tuesday's session in the red, extending their losses from Monday's sell-off.

The Dow Jones Industrial Average shed 77 points, or 0.2%. The S&P 500 also slid 0.2%, while the Nasdaq Composite edged 0.1% lower.

— Lisa Kailai Han

Stocks making moves before the bell

Here's a look at some notable movers in premarket trading:

• Kohl's — Shares of the retailer sank 14% after fourth-quarter results showed a decline of 9.4% in net sales and full-year guidance missed expectations. Kohl's said it expects earnings per share of between 10 cents and 60 cents for the current fiscal year, below the $1.23 expected by analysts, according to LSEG.
• Southwest Airlines — Shares of the budget airline jumped almost 10% after the company announced that it will start charging passengers to check bags and will begin offering a basic economy fare.
• Asana — The software stock fell 25% after CEO and co-founder Dustin Moskovitz announced he is retiring. Moskovitz owns a majority of Asana's outstanding shares.

— Jesse Pound

Lennar downgraded by Keefe, Bruyette & Woods

Keefe, Bruyette & Woods is moving to the sidelines on Lennar, downgrading the stock to market perform from outperform on Monday.

Analyst Jade Rahmani noted the homebuilder has reached a valuation near parity with its large-cap peers and said he sees downside risks to estimates. In February, Lennar completed its spinoff of Millrose Properties (MRP), which could affect its gross margin, he said.

"Given our expectations for a choppy Spring selling season and growing risks to gross margin due to the challenging macro environment and uncertainty around the MRP spin-off, we believe a more cautious stance is warranted," Rahmani wrote in a note to clients.

He also lowered his price target to $141 from $152, which implies 13% upside from Monday's close. Shares are down 8% year to date.

— Michelle Fox

Small business sentiment dims as uncertainty grows, NFIB survey shows

Small business sentiment declined in February as owners began raising prices and grew more uncertain about future conditions.

The National Federation of Independent Business Small Business Optimism Index posted a reading of 100.7 for the month, down 2.1 points from January and slightly below the Dow Jones estimate for 101. However, some of the internal indicators pointed to an even greater softening in sentiment.

Among them, a net 37% of small business owners expect the economy to improve, down 10 percentage points from January; just 12% said now is a good time to expand, a decrease of 5 points and the biggest monthly drop since April 2020; and a net 32% say they are raising prices, up 10 points for the largest monthly increase since April 2021 and the third-highest reading ever.

Also, the survey's Uncertainty Index increased to 104, a rise of 4 points and the second-highest reading in the survey's history, which dates back to 1973.

— Jeff Cox

Wolfe Research says Madison Square Garden Entertainment shares can surge 50%

Wolfe Research turned bullish on Madison Square Garden Entertainment, saying the stock is pricing in an unlikely stagnation in the entertainment business.

Analyst Peter Supino upgraded shares of the New York-based live entertainment operator to outperform from peer perform. Supino's $46 price target suggests shares can rally 50.4% over Monday's closing level.

"With robust live event industry trends, stable tenants, and reliable pricing power, we see growth and little downside," Supino wrote to clients in a Tuesday note.

Supino noted that Madison Square Garden's events for the first quarter of 2026 are trending above the record set in the same three-month period a year prior, which he said offers a "positive early signal" for the fiscal year. A potential renovation of Penn Station would be a "windfall," he added.

Tuesday's call marks a turn for Supino, who downgraded shares to peer perform after the stock was separated from Sphere Entertainment. While Supino said a consumer recession is a risk for share prices, the analyst said to see any cyclical pullbacks as temporary.

Shares popped 1.6% before the bell on Tuesday. However, shares have tumbled around 14% in 2025.

— Alex Harring

Bernstein raises price target for Mondelez

Bernstein sees a rally ahead for Mondelez shares as cocoa costs cool.

Analyst Alexia Howard hiked her price target on the candy maker by $12 to $81, which now implies upside of 18.9% over Monday's close. Howard also has an outperform rating on the stock.

"We believe that MDLZ has significant upside from here," Howard wrote to clients. That's "based on the likely eventual deflation in cocoa costs, which have already started to fall from recent peaks but have yet to stabilize."

Howard also pointed to the company's unique global exposure, which she said provides a runway in markets such as China and India. This diversification, she said, "insulates" the stock from U.S.-specific overhands such as weight loss drugs, tariffs and potential cuts to the Supplemental Nutrition Assistance Program.

Mondelez shares hovered around flat in Tuesday's premarket. Shares have jumped more than 14% so far in 2025.

— Alex Harring

Southwest Airlines will charge to check bags for the first time

Southwest Airlines announced Tuesday that for the first time, it will charge passengers to check bags. The move comes as the low-cost airline tries to boost revenue while coming under pressure from activist Elliott Investment Management.

Shares were down slightly in the premarket despite the announcement.

— Leslie Josephs

Wells Fargo double-upgrades Houlihan Lokey

Wells Fargo issued a rare double-upgrade, calling Houlihan Lokey the right stock to play during the ongoing market volatility.

Analyst Michael Brown upgraded the investment bank's stock to overweight from underweight. Brown cut $1 off his price target to $179, but that still implies 15.9% upside over Monday's close.

"Defensibility, with upside to the M&A recovery, is attractive during periods of uncertainty in the highly cyclical M&A industry," Brown said, using the popular acronym for mergers and acquisitions. "These are the times when HLI's premium multiple most warranted."

In other words, Brown said the stock's valuation is still considered lofty, but its "all-weather" business model shines during bouts of rocky markets. What's more, the analyst said the company's diversification with M&A can help insulate the business and keep margins stable.

Brown's call comes amid a rough patch for the stock, which has dropped just over 11% in 2025.

— Alex Harring

U.S. Treasury yields continue to move lower as investors seek safety

U.S. Treasury yields continued to slide on Tuesday as fears of a possible U.S. recession pushed investors to safe havens.

The benchmark 10-year Treasury yield fell as much as 5 basis points to hit 4.162% earlier in the morning before paring some losses to trade around 4.1865% at around midday Singapore time (12:05 a.m. ET).

The 2-year Treasury yield dropped as low as 3.829% before recovering slightly to around 3.875%.

One basis point is equal to 0.01%, and yields and prices move in opposite directions.

— Katrina Bishop

DOGE-related job losses unlikely to move the needle on future interest rate cuts, Barclays says

While job losses from Elon Musk's so-called Department of Government Efficiency may have sent shockwaves through the market, these mass losses are unlikely to make a huge difference in any upcoming monetary policy decisions, according to Barclays.

"In our view, the bar is high for DOGE-related job losses, in isolation, to alter the FOMC's policy course in the next few meetings. To trigger a move, we think the FOMC would need to see evidence that this is part of a persistent weakening of aggregate labor demand," the bank wrote in a recent note. "The skill and education levels of these workers varies widely, and their geographic footprint is spread throughout the US, suggesting that the private sector will absorb many of these displaced workers."

— Lisa Kailai Han

Wolfe Research is 'certain' that volatility will continue to dominate the market

Market uncertainty has risen over the past few weeks, and Wolfe Research is sure that this trend will continue.

"Investors are likely feeling 'tariff fatigue' as flip flopping of policy and a barrage of news flow throughout last week has whipsawed markets. While this week could very likely bring about more changes to 'current' policy, it remains certain that volatility and choppy trading will continue to dominate," wrote Chris Senyek, the firm's chief investment strategist.

But the good news? While U.S. growth concerns have been building, Senyek also pointed out that overall fundamentals still look healthy for the domestic economy.

"We continue to believe that the U.S. economy is still solid, on the back of the high-end consumer, which drives roughly 50% of overall spending," he wrote. "While we see the current market action as a 'typical' drawdown for stocks with NDX and SPX down 10% & 7% from highs, technical measures are signaling fear but not a washout."

— Lisa Kailai Han

More than 82% of all shares traded on Nasdaq fell in price

More than four out of five, or 82.27%, of all shares traded on the Nasdaq Stock Market on Monday fell in price, while only 17.21% advanced, according to FactSet data. The rest were unchanged.

The New York Stock Exchange fared a little better, with 76.38% of total volume declining and 22.75% advancing.

Those numbers correspond roughly with the number of declining versus advancing stocks. On both the Nasdaq and the NYSE, decliners beat advancers by about 4 to 1. New 52-week lows on Nasdaq reached 413 against just 69 new highs, while on the NYSE new lows beat new highs 137 to 42.

Trading volume was active Monday, with NYSE composite volume of 6.5 billion shares topping 125% of the past 30 days' average and Nasdaq composite volume at 8.79 billion more than 106% of the past month's average, using FactSet data.

— Scott Schnipper

Delta Air Lines, Oracle among the stocks making moves after hours

Here are some stocks making big moves in extended trading:

• Delta Air Lines — Shares of the airline operator slid about 14%. The company dialed back its forecast for the first quarter, citing "the recent reduction in consumer and corporate confidence caused by increased macro uncertainty." Delta now sees year-over-year revenue growth of 3% to 4% for the period, down from a projected increase of 7% to 9%. The company also dialed back its earnings outlook to 30 cents to 50 cents per share, compared to an earlier forecast of 70 cents to $1 per share.
• Oracle — The cloud computing stock gained 3%. Oracle announced it was raising its quarterly dividend by 25% to 50 cents per share. Separately, fiscal third-quarter results missed Wall Street's expectations on the top and bottom lines.
• Asana — Shares plunged more than 25% after CEO Dustin Moskovitz announced he is going to retire. The company also issued weak guidance. Asana expects first-quarter revenue of between $184.5 million and $186.5 million, below the $191 million analysts were expecting, according to LSEG. Meanwhile, the company anticipates full-year revenue will come in at $782 million to $790 million, while analysts had estimated $803.5 million.

Read here for the full list.

— Sean Conlon

Stock futures open little changed

U.S. stock futures were relatively unchanged Monday night following a broad market sell-off during the day's regular session.

Futures tied to the S&P 500 hovered around the flatline, while Nasdaq-100 futures dropped about 0.2%. Futures tied to the Dow Jones Industrial Average gained 36 points, or about 0.1%.

— Sean Conlon