Wed Mar 12 14:20:00 UTC 2025: ## US Markets Plunge on Tariff Uncertainty, Then Partially Recover

**New York, NY** – US stock markets experienced a dramatic seesaw on Tuesday, fueled by President Trump’s renewed threat of hefty tariffs on Canada. The Dow Jones Industrial Average initially plummeted over 700 points before closing down 478 points (1.14%), while the S&P 500 fell 0.76% and the Nasdaq Composite dipped 0.18%. The S&P 500 came close to correction territory, down 9.3% from its February high.

The market’s initial sharp drop followed Trump’s reiteration of his tariff threat. However, a subsequent announcement of US-Canada talks this week to ease trade tensions helped mitigate some losses. Despite the partial recovery, market analysts expressed deep concern over the administration’s fluctuating trade policies, citing investor uncertainty as a key factor driving the volatility.

Art Hogan, chief market strategist at B. Riley Wealth Management, stated that the market is “blatantly sick and tired” of the back-and-forth on trade policy. He highlighted the difficulty for investors to maintain confidence amidst the uncertainty. This sentiment was echoed by other analysts who noted a growing “tolerance for pain” among investors.

While President Trump downplayed the market decline, asserting that markets naturally fluctuate and that his focus is on rebuilding the country, White House Press Secretary Karoline Leavitt described the market downturn as a “snapshot of a moment in time” within a period of economic transition. She expressed confidence that the president would act in the best interests of both Wall Street and Main Street.

Monday’s market selloff, which saw the Dow drop 890 points and the S&P 500 fall 2.7%, further contributed to the overall anxiety. Airlines and Ford were among the hardest hit stocks. The CNN Fear and Greed Index registered “extreme fear” among investors, reflecting the uncertainty surrounding the trade situation. The global impact was evident, with European markets also experiencing significant declines.

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