Market Reaction to New Tariffs

Early Tuesday trading saw major US stock markets in the red following President Donald Trump's announcement of a new 20% tariff on Chinese imports. This move prompted an immediate response from Beijing, further escalating trade tensions between the two economic giants.

Impact on Dow Jones, Nasdaq, and S&P 500

By 7:36 am ET, the Dow Jones had fallen by 0.35%, with the Nasdaq 100 and S&P 500 not far behind, losing 0.55% and 0.50% respectively. Investors are closely monitoring these developments, concerned about the potential for increased economic uncertainty.

Euro Strengthens Against the Dollar

In currency markets, the euro saw a 0.50% increase against the dollar, trading at $1.05463 at the same time. This movement reflects the complex interplay of global trade policies and their impact on currency valuations.