Stocks tumbled Tuesday morning as businesses and investors assessed the impact of newly imposed U.S. tariffs against leading trade partners. 

The Dow Jones Industrial Average and S&P 500 were each down 1.5% in recent trading, while the tech-heavy Nasdaq Composite dropped 1.4%. Stocks fell sharply on Monday—the S&P 500 posted its biggest one-day decline of 2025—amid growing concerns about the health of the economy and uncertainty about the impact of Trump administration policies.

Overnight, the U.S. imposed long-awaited 25% tariffs on Canada and Mexico, while doubling the levy on goods imported from China to 20%. Beijing and Ottawa quickly announced retaliatory tariffs on a number of products, while Mexico said it would announce measures on Sunday. The White House argues that tariffs will lead to more investment and new manufacturing jobs in the U.S., while investors fear that the trade measures will spark inflation and harm companies that do business around the world.

Target (TGT) shares were down 4.5% after the retailer reported better-than-expected earnings but warned that consumer uncertainty, as well as uncertainty around tariffs, would weigh on current-quarter results. Best Buy (BBY) shares plunged 13% after the electronics retailer released its quarterly results and said that tariffs would likely lead to price increases.

Financial services stocks were also down sharply, with Goldman Sachs (GS), JPMorgan Chase (JPM) and American Express (AXP) all falling about 5%. The S&P 500 financial services sector was down 3.3%, the biggest decliner in Tuesday’s broad-based selloff.

Shares of the world’s largest technology companies, which led Monday’s sell-off, were under pressure again this morning. Tesla (TSLA) shares were down nearly 7% and have now lost one-third of its value since the start of the year. AI chipmaker Nvidia (NVDA), which lost nearly 9% yesterday, was down another 1.5% this morning. Microsoft (MSFT), Amazon (AMZN), Meta Platforms (META) and Broadcom (AVGO) also lost ground, while Apple (AAPL) and Alphabet (GOOG) inched higher.

Walgreens Boots Alliance (WBA) shares were up nearly 7% after The Wall Street Journal reported that the pharmacy chain was close to a roughly $10 billion deal to be taken private.

The yield on 10-year Treasurys, which tends to fall when economic conditions weaken, was at 4.14% in recent trading, down from 4.18% at yesterday’s close. The yield, which affects borrowing on all sorts of costs, notably mortgages, is at its lowest level since early December.

Bitcoin was at $82,600, after rising to around $95,000 yesterday following an announcement by Trump that a crypto strategic reserve would be created.

Gold futures were up 0.6% at $2,920 an ounce, while West Texas Intermediate crude oil futures fell 1.4% to $67.40.