US markets closed mixed on Tuesday as renewed tariff threats and looming restrictions on China cast a shadow over investor sentiment.
At the same time, consumer confidence took its sharpest dive in nearly four years, stoking fears of an economic slowdown.
The Nasdaq Composite (^IXIC) shed 1.3%, weighed down by Nvidia (NVDA) and Tesla (TSLA).
The S&P 500 (^GSPC) slipped 0.4%, while the Dow Jones Industrial Average (^DJI) clawed back earlier losses to close 0.4% higher.
Meanwhile, bitcoin (BTC-USD) plunged below $90,000 for the first time since November, hitting an early-morning low of $86,000 before stabilizing around $88,000 at the close.
Ether (ETH-USD) tumbled 6%, dipping just above $2,500, with crypto-linked stocks like Coinbase (COIN) and MicroStrategy (MSTR) under pressure.
The latest turbulence came as former President Donald Trump signaled that his trade overhaul is far from over, with upcoming tariffs on Mexico and Canada adding to concerns over trade disruptions.
Investors also grappled with reports that his administration is weighing stricter curbs on chip exports to China, which could spell trouble for Nvidia ahead of its earnings release on Wednesday.
Already navigating tariffs and export bans, the AI chip powerhouse faces mounting uncertainty.
Treasury yields reflected the growing anxiety. The 10-year Treasury yield (^TNX) dropped to 4.3%, its lowest level this year, as traders increased bets on interest rate cuts to cushion the economy from potential trade fallout.
Tesla (TSLA) was another major drag, sinking over 8% after data revealed a staggering 45% drop in its European sales for January.
The EV maker’s struggles underscore broader concerns about declining demand and intensifying competition in the electric vehicle market.
With volatility gripping stocks, crypto, and bonds alike, markets are bracing for more twists and turns as trade tensions and economic uncertainty continue to dictate the narrative.
Businesses across sectors are watching closely, weighing the potential impact of shifting policies and economic indicators on their strategies.
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