- The stock market’s post-election Trump bump has been wiped out.
- Both stocks and bond yields are sinking as Trump’s tariffs spark fears of a global trade war.
- It’s the opposite of what happened earlier this year when yields jumped on views tariffs would stoke inflation.
Investors sold stocks and went on a bond-buying spree as Trump’s tariffs kicked in on Tuesday.
It offered a sign of a shifting market narrative: traders have started to focus more on tariffs’ impact on economic growth, rather than the possibility they spark a fresh increase in inflation.
Here’s a rundown of the day’s moves:
- S&P 500: Down 2% to 5,732.59 at intraday lows, marking an erasure of the post-election Trump bump
- Nasdaq 100: Down 1.9% to 20,034.68 at intraday lows, putting the index in correction territory
- 10-year Treasury yield: Down as much as 5 basis points to 4.104%
Bond yields, which move inversely to prices, slid as…
