The S&P 500 stock index erased all of the gains it had made since the US election as share prices fell sharply on Tuesday due to fears over the impact of Donald Trump’s tariffs.
The S&P 500 was down 1.1 per cent on Tuesday afternoon. Earlier in the day, it dipped below the 5,782.76 at which it closed on November 5.
The tech-heavy Nasdaq index was down 0.5 per cent on Monday.
Stocks had initially rallied after Trump’s election victory, with investors betting that his promise of tax cuts would boost corporate profits.
As recently as two weeks ago, the S&P was at an all-time high, up more than 6 per cent since the vote.
However, those gains have since been erased as investors fret that the impact of Trump’s aggressively protectionist trade policy will hurt the US economy.
On Tuesday, the US imposed 25 per cent tariffs on Canada and Mexico, and an additional 10 per cent levy on China. All three countries announced plans for retaliatory measures in response, escalating fears of a trade war.
