Stock market today: Wall Street's losing streak deepens as Trump's tariffs kick in

New York, Mar 4 (AP) Stocks are falling again on Wall Street as companies and investors react to President Donald Trump's decision to impose tariffs on the US's biggest trading partners.

The S and P 500 dropped 0.7 per cent Tuesday morning, the Nasdaq fell 0.6 per cent and the Dow slid 423 points, or 1 per cent.

The burgeoning trade war between the US, China, Canada and Mexico is helping to extend a recent slump for US stocks that was prompted by signs of weakness in the economy.

Shares of Target and Best Buy fell after the retailers warned of higher prices for consumers due to tariffs. Markets in Europe fell sharply while stocks in Asia saw more modest declines.

Wall Street lost momentum before the opening bell Tuesday and markets in Europe and Asia slid after new tariffs were imposed by US President Donald Trump, and more retaliatory tariffs were announced by China.

The declines added to a big selloff Monday. Futures for the S and P 500 and Nasdaq each fell 0.6 per cent in premarket trading. Futures for the Dow Jones Industrial Average slipped 0.3 per cent.

China's tariffs on American beef, corn, soy and other farm products announced Tuesday expanded the potential impact of Trump's trade tactics, said Francis Lun, CEO of Geo Securities in Hong Kong.

“I don't think China will buy any more US farm products. The orders will go to South America,” Lun said. “I think all in all, it's a lose-lose situation. Nobody gains anything.” Anxiety over tariffs is also bleeding into the corporate side of the economic equation. Target reported Tuesday that sales and profit in the crucial holiday quarter both fell from a year ago, though they were better than expected.

The Minnesota retailer said there will be “meaningful pressure” on its profits to start the year because of tariffs and other costs.

Target shares were largely unchanged before markets opened Tuesday.

Walgreen's jumped 4.8 per cent in the early going after The Wall Street Journal reported that the struggling pharmacy chain is in the midst of a deal to go private.

Citing unnamed sources, the Journal reported that private-equity firm Sycamore Partners would take the struggling drugstore chain off the public market for around USD 10 billion and that a deal could be reached as soon as Thursday.

Many had hoped Trump would choose a less painful path on global trade. Monday's loss shaved the S and P 500's gain since Election Day down to just over 1 per cent from a peak of more than 6 per cent.

That rally had been built largely on hopes for policies from Trump that would strengthen the US economy and businesses.

After the S and P 500 set a record last month following a parade of fatter-than-expected profit reports from big US companies, the market began diving following weaker-than-expected reports on the US economy, including a couple showing US households are getting much more pessimistic about inflation because of the threat of tariffs.

In Europe at midday, Germany's DAX slipped 2.3 per cent, while in Paris the CAC 40 declined 1.4 per cent. Britain's FTSE 100 lost 0.5 per cent.

In Asian trading, Tokyo's Nikkei 225 dropped 1.2 per cent to 37,331.18, while the Hang Seng in Hong Kong lost 0.4 per cent to 22,922.16. The Shanghai Composite index edged 0.2 per cent higher to 3,324.21.

South Korea's Kospi gave up 0.2 per cent to 2,528.92. Taiwan's Taiex shed 0.7 per cent, while Bangkok's SET lost 1.1 per cent. (AP) PY PY

Source: PTI