(NEW YORK) — U.S. stocks inched lower in early trading on Tuesday, extending losses suffered Monday as markets reacted to President Donald Trump’s refusal to rule out a possible recession amid an escalating global trade war.
The Dow Jones Industrial Average ticked down about 80 points, or 0.2%, while the S&P 500 declined 0.2%. The tech-heavy Nasdaq dropped about 0.15%.
The slight drop in early trading on Tuesday followed a days-long market decline touched off by U.S. tariffs imposed last week on Canada, Mexico and China, some of which were delayed. Retaliatory tariffs issued by China on Monday deepened a trade war between the world’s two largest economies.
On Monday, the tech-heavy Nasdaq plummeted 4%, recording its worst day of trading since 2022. The Dow Jones Industrial Average and S&P 500 each dropped more than 2% on Monday.
The market drawdown on Monday extended losses last week. The S&P 500 recorded its worst week since September.
When asked about a potential recession in an interview broadcast on Sunday, Trump said tariffs imposed in recent days could bring about a “period of transition.”
“I hate to predict things like that,” Trump told Fox News in an interview recorded on Thursday. “It takes a little time, but I think it should be great for us.”
In response to a question later on Sunday about his reluctance to rule out a recession, Trump said: “I tell you what, of course you hesitate. Who knows?”
The Bureau of Labor Statistics is expected Tuesday morning to release a report on how many jobs are open in the economy, which could provide another clue about the strength of economy amid the new recession concerns. An inflation report is expected Wednesday.
This is a developing story. Please check back for updates.
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