Dow drops 390 points as tariff uncertainty overshadows Fed meeting

American actions fell sharply on Tuesday as uncertainty about global trade negotiations and caution before the decision of the Federal Reserve rates weighed on the markets.

The industrial average of Dow Jones dropped by 389.83 points, or 0.95%, while the S&P 500 lost 0.77%and the Nasdaq Composite slipped by 0.87%.

The sale occurred after President Donald Trump reduced expectations for imminent commercial transactions at a meeting with Canadian Prime Minister Mark Carney. “We don’t have to sign agreements”, Trump saidcontradicts the previous remarks of himself and the secretary of the Treasury Scott Bessent, who had suggested that the major agreements were close.

Tesla’s shares have decreased by more than 2% after sales of new cars in Germany and the United Kingdom have reached two years, despite increasing demand for electric vehicles. Technological stocks like Nvidia and Meta also dropped, with Goldman Sachs, which reduced the Dow below.

Federal reserve meeting

Markets are also concentrated On the federal reserve, which launched its two -day political meeting on Tuesday. The central bank should largely have stable rates, the term markets, cutting only 2.7% of the drop in rates.

However, investors are looking for advice from President Jerome Powell on how the Fed interprets the economic impact of renewed tariff tensions.

While data in the service sector published Monday showed surprising strength, market players remain concerned about the longer -term implications of Trump’s evolutionary position on trade.

Hell fund manager Paul Tudor Jones warned That even partial rates could still act as significant tax increases, potentially razing several percentage points on economic growth.