U.S. equities declined for the second day on Tuesday amid growing tariff uncertainty, with unclear signals from President Trump and Treasury Secretary Scott Bessent regarding upcoming trade agreements.
Mixed Signals on Trade Talks Fuel Market Drop
President Trump stated that his administration would assess potential trade deals over the next two weeks, but offered no concrete outcomes after meeting Canadian Prime Minister Mark Carney. Contradicting this, Treasury Secretary Scott Bessent hinted that some agreements might be announced as early as this week.
Tariff Uncertainty Drives Market Reactions
Investors remain cautious as tariff-related risks rise. Trump announced plans to impose pharmaceutical tariffs within two weeks. The healthcare sector was hit hardest, with major stocks like Eli Lilly down 5.6% and Moderna falling 12.3%. Vertex Pharmaceuticals also dropped 10% amid news of a controversial new FDA appointee.
Expert Views Highlight Negotiation Challenges
“China is the big one… we might have to go it alone without China for a while.”
– Tim Ghriskey, Ingalls & Snyder
Historical Pressure and Market Outlook
Since the April 2 tariff announcements, the S&P 500 has experienced major volatility. The Commerce Department reported a record $140.5 billion trade deficit in March as businesses rushed to import goods ahead of expected tariffs.
With the Federal Reserve in the midst of a two-day meeting and markets pricing in a potential rate cut by July, will tariff uncertainty continue to shape investor sentiment through the summer?
