Wall Street stocks drop on US tariffs on steel and aluminum

US President Trump slaps 25% tariffs on steel and 10% on aluminum imported from the European Union, Canada and Mexico.
The European Union, Canada and Mexico are getting ready to impose tariffs on US goods. Markets reacted negatively to the trade war.

Flavio Tosti Independent Analyst

The three main US stock indices dropped on Thursday. The S&P 500 Index lost 0.69% to 2,705.27 while the Dow Jones Industrial Average dropped 1.02% to 24,415.84. The Nasdaq Composite Index fell 0.27% to 7,442.12.

US President Donald Trump said that he is mposing steel and aluminum trade tariffs from the European Union, Canada and Mexico. The US tariffs will be set at 25% on steel and at 10% on aluminum as they will enter into effect on Friday. The markets reacted negatively to the news as the main US stock indices ended the day in the red.

The European Union reacted by issuing a list of hundreds of US product which will be subject to trade tariffs by European consumers. Canada which the second biggest trade partner of the US said they would respond with "dollar for dollar" tariffs against US steel and aluminum exports. Meanwhile, Mexico, the third largest US trade partner, said it would impose tariffs on US goods such as flat steel, pork bellies, grapes, apples and cheese.

Over in Italy, it has been reported that the Five-Star Movement and the League are ready for setting up a new government. Giuseppe Conti will be the Prime Minister while eurosceptic Paolo Savona will be Minister for European affairs. Earlier in the week, stock indices worldwide sold-off on fears that Italy’s political crisis could lead to Italy leaving the Eurozone.

Looking ahead, traders will focus on the Nonfarm Payrolls data on Friday.

Dow Jones daily chart

Author

Flavio Tosti

Independent Analyst

EUR/USD gathers traction, approaches 1.1800

EUR/USD manages to reverse Tuesday’s pullback, advancing to two-day highs near the 1.1800 hurdle in the latter part of Wednesday’s session. The pair’s decent uptick comes on the back of the modest retracement in the US Dollar, as investors continue to closely follow developments on the trade front and news from the White House in the wake of President Trump’s SOTU speech.

GBP/USD challenges multi-day highs near 1.3530

GBP/USD leaves behind the previous day’s decline and regains fresh upside traction on Wednesday, surpassing the 1.3500 barrier in a context of a modest decline in the Greenback and a generalised improved mood in the risk-linked space. Meanwhile, the US tariff narrative continues to dictate the mood among market participants after Presidet Trump’s SOTU speech failed to surprise markets.

Gold remains bid and close to $5,200

Gold buyers are returning to the fold on Wednesday, targeting the $5,200 area and possibly beyond, after Tuesday’s corrective dip from monthly highs. The rebound in the precious metal comes as the US Dollar loses traction, with Trump’s SOTU speech offering little fresh direction and AI-related nerves continuing to ease.

Crypto Today: Bitcoin, Ethereum, XRP test rebound strength as ETF inflows return

Bitcoin, Ethereum and Ripple are gaining traction at the time of writing on Wednesday, amid persistent market doldrums. The Crypto King is up over 2% intraday, trading above $65,000 from the day’s opening of $64,058.

Nvidia earnings to influence AI trade and broader market sentiment

For the last three years, Nvidia has been the engine of the AI boom, and now Wall Street is watching to see whether that momentum can keep going. High-growth stocks have been struggling to maintain their bullish trend in 2026.

Cosmos Hub Price Forecast: ATOM rebounds slightly, bearish outlook remains intact

Cosmos Hub (ATOM) price rebounds, trading above $2.05 at the time of writing on Wednesday, after undergoing a sharp correction since last week. Weakening on-chain and derivatives data support a bearish outlook, while technical analysis remains unfavorable.