Wall Street experienced declines on Tuesday as U.S. households grew more pessimistic about the economy due to inflation, tariffs, and other policies from Washington. The S&P 500 fell 1% in morning trading, while the Dow Jones Industrial Average dropped 138 points, or 0.3%, and the Nasdaq composite slid 1.9%. Recent weaker-than-expected economic reports, including a larger-than-anticipated drop in consumer confidence, contributed to the downturn. Stephanie Guichard of the Conference Board highlighted a sharp increase in mentions of trade and tariffs, with concerns about the current administration’s policies dominating responses. Consumer spending is a key driver of the U.S. economy, making such data critical for Wall Street. High-momentum stocks like Nvidia and Tesla saw significant declines, while Bitcoin fell below $87,000, impacting crypto-related stocks. Home Depot reported stronger-than-expected profits but noted economic uncertainties, while Keurig Dr Pepper rose after better-than-expected results. Treasury yields dropped as investors sought safer investments amid economic uncertainties. The 10-year Treasury yield fell to 4.28% from 4.40%. Global stock markets showed mixed results, with Tokyo’s Nikkei 225 losing 1.4%. — news from The Associated Press
