U.S. stocks mostly fell in early trading Tuesday, extending Monday’s steep losses on recession fears as more companies expressed worries about the consumer.
About 70% of America’s economy is consumer-driven. Lately, surveys have shown consumers are feeling less optimistic and now businesses are sounding alarms.
Retail giant Walmart was the first last month to suggest consumer spending may slow. Since then, major airlines, including Delta and American, and retailers like Dick’s have joined the chorus.
The warnings compound jitters stemming from President Donald Trump’s back-and-forth tariff comments that have whipsawed investors.
Trump said Tuesday morning he has ordered his administration to raise tariffs on Canadian steel and aluminum imports by an additional 25%, bringing the total duties to 50%. The additional tariff is in response to a decision by Ontario’s government to slap a 25% tax on electricity exports to the U.S.
Stocks went into a tailspin on Monday after Trump declined in an interview on Sunday to rule out a recession this year. Instead, he emphasized “a period of transition” that’s happening.
ING economists said “scattered calls for a U.S. recession” are “probably overblown.”
