Updated April 08, 2025 at 09:49 AM ET
U.S. stock markets fell once again on Tuesday, continuing a sell-off that has seen equity markets across the world crater since President Trump's announcement of tariffs.
The losses came after U.S. stocks attempted earlier to rebound after shares in Europe and Asia gained on Tuesday following the tumultuous day on global markets on Monday.
But tariff concerns returned later in the session after the White House confirmed it would proceed with a 104% tariff on China that will kick in on Wednesday.
The Dow Jones Industrial average ended down over 300 points, or 0.8%, after earlier gaining as much as 3.8%. The S&P 500 fell 1.6%, while the Nasdaq ended down a little over 2%.
The losses on Tuesday, though not as harsh as in previous few days, will nonetheless add to the value destruction that has already seen trillions of dollars in investor wealth wiped out.
Asia and Eruope rebounded, but uncertainty remains
U.S. investors had earlier been heartened by gains in global markets on Tuesday.
The major stock markets in Hong Kong and Shanghai — the Hang Seng Index and Shanghai Composite, respectively — closed slightly higher on Tuesday, while Tokyo's Nikkei ended the day's trading in Japan up more than 6%. It hit its lowest level in 18 months on Monday, with its listed stocks having lost almost a fifth of value over the past two weeks.
European markets also posted gains on Tuesday, but investors in the continent's major stock markets have also suffered significant losses in the past week, and that's even before exporters have really begun to feel the effects of significant tariffs on European products sold to the United States.
As investors seek out assets that can serve as a bulwark against uncertainty in other markets, the price of gold has continued to soar to above $3,000 an ounce, prompting financial analysts to liken the current geopolitical and economic uncertainty to that of the late 1970s and 1980s, when gold prices also spiked significantly.
And in light of the uncertainty over the United States' future role on the world stage, analysts say another asset usually considered a safe haven for investors — the dollar — may also continue to weaken against other global currencies.
Countries continue reacting to Trump's tariffs
In China, a number of large, government-backed businesses and listed companies have announced they will buy back their own shares, as part of a wider effort to calm the local equity markets.
Officials in China said Tuesday that they wouldn't back down in the face of Trump's threats to impose a further 50% tariff on Chinese exports to the U.S., saying "China will fight till the end if the U.S. side is bent on going down the wrong path."
But other countries have expressed willingness to negotiate, according to the White House. For example, President Trump said on social media on Tuesday that South Korea was sending a team to the U.S. to try to negotiate a deal after the U.S also imposed tariffs last week on the Asian country.
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