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The Wall Street shares slipped on Tuesday after a round of dark data about the trust of consumers deepened the concerns of investors that Donald Trump’s tariffs will beat the world’s largest economy.
The Blue-Chip S&P 500 index fell by 0.5 percent, and the technical driving Nasdaq Composite set 1.4 percent and sold loosely after sharper declines earlier a day.
After Trump’s elections in November, the US shares had risen sharply, hoping that he would organize economic economic policy and recently brought the S&P 500 to a record high last Wednesday.
Disappointing reports about everything, from consumer mood to the sale of homes, have sent the S&P 500 lids in the past four days.
The precisely observed measure of the consumer confidence of the conference committee was 98.3 in February, the steepest decline since August 2021 and far worse than the 102.5 Wall Street awaited.
The short -term prospects of consumers for the economy were for the first time since June 2024 under the threshold, which normally signals a recession.
At the same time, the report showed 5.2 percent to 6 percent due to the average 12-month inflation expectations.
“This increase probably reflected a mixture of factors, including the sticky inflation, but also the latest prices for important household sewers such as eggs and the expected effects of tariffs,” said Stephanie Guichard, Senior Economist at the Conference Board.
Guichard added: “The mentions of trade and tariffs rose strongly. . . Above all, the comments on the current administration and their guidelines dominated the answers. ”
The JPMorgan economist ABiel Reinhart repeated this feeling and said: “It seems that political headlines cause a withdrawal to the mood.”
Investors will grow “increasingly uncomfortably” in terms of a growing list of negative economic data and potential growth of unpredictable tariff announcements, said Charlie Mceligott, a derivative strategist near Nomura.
He added that Nomura customers had increased their purchases from derivatives that are known as options in the past few days, which would become valuable if the S&P 500 falls strong.
Defensive stocks such as the manufacturer of beverage manufacturers Dr. Pepper and toothpaste, Colgate-Palmolive, rose by more than 2 percent on Tuesday than the investors involved in the market bags, which normally exceed when the economy cools down. Real estate stocks that benefit from lower interest rates also gathered.
The public debt of the US government, which usually increases in times of the growing market tang, won the price and broadcast the returns. The 10-year-old state treasury fell by 0.1 percentage points to 4.29 percent, the lowest level since mid-December.
Tech shares that have increased in recent years and usually perform well during the economic boom times. The data analysis company of Peter Thiel, Palantir, has lost 3.2 percent and the digital ad group Applovin 5.9 percent. Tesla fell by 8.4 percent and pulled his market capitalization below $ 1.
“This US rotation looks defensive,” said Andrew Laptthorne from Société Générale, who emphasized how investors are increasingly shifting from the growth stocks in the tech sector to “low volatility” parts in health, supplier and consumer stations.
The weak economic figures and worries about Trump’s tariff plans also dropped the oil prices on a two -month depth on Tuesday.
Brent Crude, the global benchmark, fell by 2.1 percent to $ 73.20 per barrel, while West Texas intermediates, the US marker, left 2.2 percent to $ 69.13.
“The weak consumer confidence was an event for the destruction for crude oil and petrol,” said Robert Yawger, Commodity -Analyst at Mazuho Securities, an investment bank.
Additional reporting by Jamie Smyth in New York
