(NEW YORK) — Stocks futures traded slightly higher early Wednesday, following another volatile day for the market amid the continued rollout of President Donald Trump’s tariffs on goods from top U.S. trading partners.
Dow futures were higher by 189 points or 0.46%. Both the Nasdaq and S&P 500 also appeared ready to open narrowly higher on Wednesday.
Traders are expected to be looking to Wednesday’s inflation report for clues on the health of the economy amid Trump’s escalting trade war. Expectations are that inflation will be up 2.9% compared to a year ago. A worse-than-expected report could add to negative stock sentiment.
Trump’s 25% tariffs on all imported steel and aluminum products came into effect overnight. The European Commission said EU member states would retaliate with duties on U.S. goods, sending European markets mostly higher.
Some economists say that while the tariffs could boost the local steel industry in the United States, they could also lead to higher prices for industries that purchase steel. Those higher prices may eventually reach consumers.
The U.S. relies heavily on imported aluminum and those costs are expected go up as well.
This is a developing story. Please check back for updates.
(WASHINGTON) — An inflation report to be released on Wednesday will provide a fresh gauge of economic performance under President Donald Trump as markets slide and recession fears swell in response to an escalating trade war.
Economists expect the data to show that inflation eased in February.
Consumer prices are expected to have risen 2.9% over the year ending in February, which would amount to a slight slowdown from a 3% rate recorded in January.
Analysts and households alike will closely watch for movement in egg prices, which soared 53% in January compared to a year ago. Bird flu has decimated the egg supply, lifting prices higher.
The Trump administration has started investigating egg producers to learn if market practices have contributed to the price hikes, a source familiar with the matter told ABC News.
Inflation has fallen dramatically since a peak of about 9% in 2022, but a recent acceleration of price increases has placed inflation a percentage point higher than the Federal Reserve’s target rate of 2%.
If the report reveals a cooldown in February, that could soften pressure on the Federal Reserve, which bears responsibility for keeping inflation under control.
Federal Reserve Chair Jerome Powell last week said the administration’s tariff plan would likely raise prices for U.S. shoppers and retailers
The scale and duration of the tariffs remain unclear, but a portion of the taxes on imports will probably reach consumers, Powell told an economic forum in New York City last week.
“We’re at a stage where we’re still very uncertain about what will be tariffed, for how long, at what level,” Powell said. “But the likelihood is some of that will find its way. It will hit the exporters, the importers, the retailers and to some extent consumers.”
The stock market has plunged since Trump imposed tariffs on Mexico, Canada and China last week, giving rise to warnings on Wall Street about a potential economic downturn. Within days, Trump delayed some of the tariffs on Canada and Mexico.
On multiple occasions in recent days, the White House declined to rule out a possible recession, saying the tariffs would require a “period of transition.”
A solid, albeit disappointing jobs report on Friday exacerbated concerns among some observers.
Employers hired 151,000 workers last month, falling short of expectations of 170,000 jobs added. The unemployment rate ticked up to 4.1%, which remains a historically low figure.
The Trump administration slapped 25% tariffs on goods from Mexico and Canada, as well as 10% tariffs on imports from China. The fresh round of duties on Chinese goods doubled an initial set of tariffs placed on China last month.
A day later, Trump issued a one-month delay for tariffs on auto-related goods from Mexico and Canada. The carve-out expanded soon afterward with an additional one-month pause for goods from Mexico and Canada compliant with the United States-Mexico-Canada Agreement, or USMCA, a free trade agreement.
On Tuesday, Trump announced plans to add another 25% tariff on Canadian steel and aluminum, bringing the total to 50%. The move came in response to threats made by Ontario to cut off electricity to parts of the U.S., Trump said.
Hours later, Ontario Premier Doug Ford issued a joint statement with U.S. Commerce Secretary Howard Lutnick on X announcing the suspension of the 25% surcharge on electricity sent to the U.S.
The tariffs slapped on Canada, Mexico and China are widely expected to increase prices paid by U.S. shoppers, since importers typically pass along a share of the cost of those higher taxes to consumers.
A key gauge of consumer confidence registered its largest monthly drop since August 2021, the nonpartisan Conference Board said in February.
The share of consumers who expect a recession within the next year surged to a nine-month high, the data showed. A growing portion of consumers believe the job market will worsen, the stock market will fall and interest rates will rise, the report added.
ABC News’ Katherine Faulders and Soo Youn contributed to this report.
Li Hongbo / Feature China/Future Publishing via Getty Images
(WASHINGTON) — U.S. tariffs on imported steel and aluminum are now in effect, part of an escalating series of trade maneuvers by President Donald Trump that have unsettled markets.
As of Wednesday, the U.S. is imposing 25% tariffs on all steel and aluminum imports from all trading partners with no exceptions or exemptions, according to an earlier statement by the White House.
Products that are expected to be impacted include canned goods, vehicles and washing machines.
Baseball bats, sewing needles and lamps could also go up in price.
While the tariff is being slapped on imports from all countries, the U.S. imports more steel and aluminum from Canada than any other country.
The 25% tariffs go into effect just a day after Trump threatened to double the tariff specifically on Canada amid an intensifying tit-for-tat between the two countries over Trump’s tariff policies.
Earlier this week, Ontario Premier Doug Ford threatened to impose a 25% surcharge on electricity from the province sent to U.S. customers in response to earlier U.S. tariffs on Canadian goods.
That led to a threat from Trump to up the tariffs on Canadian steel and aluminum imports to 50%.
Trump later reversed course after an agreement was reached and Ford pulled back his threat to impose the electricity surcharge.
“After President Trump threatened to use his executive powers to retaliate with a colossal 50 percent tariff against Canada, Ontario Premier Doug Ford spoke with Secretary Lutnick to convey that he is backing down on implementing a 25 percent charge on electricity exports to the United States,” White House spokesman Kush Desai said in a statement.
Ford will travel to Washington, D.C., for a meeting with U.S. Commerce Secretary Howard Lutnick on trade.
ABC News’ Zunaira Zaki contributed to this report.
(NEW YORK) — The major U.S. airlines thought they were going to have a strong first quarter, but things are not going as well as expected.
Each of the major U.S. airlines has put out guidance pointing to significant economic uncertainty that is directly affecting their domestic bookings this spring.
For its part, Delta was sure this would be a strong first quarter, but this morning the airline’s CEO admitted they were wrong.
Speaking out Tuesday during the J.P. Morgan industrials conference in New York, Southwest, United and American all echoed the same message.
The reasons: Two major plane incidents — including the deadly midair collision between an American Airlines regional jet and U.S. Army Black Hawk helicopter over Washington, D.C. — the uncertain economic future, plummeting government travel and reductions to corporate travel.
Overall, bookings fell after the deadly Jan. 29 D.C. crash, rebounded a bit, and then fell again after the Feb. 17 crash in Toronto, in which a regional jet crashed upon landing, overturned and caught fire.
“It caused a lot of shock amongst consumers. There’s a whole generation of consumers that didn’t realize these things can happen,” Delta CEO Ed Bastian said during the J.P. Morgan conference on Tuesday.
Consumer confidence is unsettled and companies are waiting to see how things shake out. While companies wait, they are booking fewer seats.
Delta expects revenue to be down $500 million — or 4% less than it anticipated this quarter.
Airlines say they will cut capacity — reducing the number of seats they are flying — in order to stabilize the market.
American Airlines has taken a significant hit at the D.C.’s Ronald Reagan National Airport from both the January crash and reductions in government travel.
The airline is reducing capacity there to limit the losses.
United says government travel is down 50%.
One bright spot: Airlines say despite the domestic bookings being weak, international travel remains strong — and airlines believe this summer will still be strong.
(NEW YORK) — U.S. stocks dropped on Tuesday, extending losses suffered a day earlier amid a fresh round of tariffs on Canada and concern about a possible recession.
The Dow Jones Industrial Average tumbled about 515 points, or 1.2%, while the S&P 500 fell 0.8%. The tech-heavy Nasdaq ticked down 0.4%.
The Tuesday selloff extended a days-long market decline touched off by U.S. tariffs imposed last week on Canada, Mexico and China, some of which were delayed.
President Donald Trump on Tuesday announced retaliatory measures on Canada after they slapped a 25% tariff on electricity sent to the U.S., saying that he is imposing an additional 25% tariff on steel and aluminum, bringing those tariffs to 50%.
The move escalated a global trade war that intensified a day earlier, when China slapped retaliatory tariffs on the U.S., deepening trade tensions between the world’s two largest economies.
On Monday, the tech-heavy Nasdaq plummeted 4%, recording its worst day of trading since 2022. The Dow Jones Industrial Average and S&P 500 each dropped more than 2% on Monday.
The market drawdown on Monday extended losses last week. The S&P 500 recorded its worst week since September.
When asked about a potential recession in an interview broadcast on Sunday, Trump said tariffs imposed in recent days could bring about a “period of transition.”
“I hate to predict things like that,” Trump told Fox News in an interview recorded on Thursday. “It takes a little time, but I think it should be great for us.”
In response to a question later on Sunday about his reluctance to rule out a recession, Trump said: “I tell you what, of course you hesitate. Who knows?”
The Bureau of Labor Statistics is expected Tuesday morning to release a report on how many jobs are open in the economy, which could provide another clue about the strength of economy amid the new recession concerns. An inflation report is expected Wednesday.
This is a developing story. Please check back for updates.
(NEW YORK) — U.S. stocks seesawed between positive and negative territory in early trading on Tuesday, remaining essentially unchanged after losses suffered Monday when markets reacted to President Donald Trump’s refusal to rule out a possible recession.
The Dow Jones Industrial Average ticked down about 225 points, or 0.5%, while the S&P 500 ticked up 0.2%. The tech-heavy Nasdaq inched higher about 0.5%.
Wobbly markets in early trading on Tuesday followed a days-long market decline touched off by U.S. tariffs imposed last week on Canada, Mexico and China, some of which were delayed. Retaliatory tariffs issued by China on Monday deepened a trade war between the world’s two largest economies.
On Monday, the tech-heavy Nasdaq plummeted 4%, recording its worst day of trading since 2022. The Dow Jones Industrial Average and S&P 500 each dropped more than 2% on Monday.
The market drawdown on Monday extended losses last week. The S&P 500 recorded its worst week since September.
When asked about a potential recession in an interview broadcast on Sunday, Trump said tariffs imposed in recent days could bring about a “period of transition.”
“I hate to predict things like that,” Trump told Fox News in an interview recorded on Thursday. “It takes a little time, but I think it should be great for us.”
In response to a question later on Sunday about his reluctance to rule out a recession, Trump said: “I tell you what, of course you hesitate. Who knows?”
The Bureau of Labor Statistics is expected Tuesday morning to release a report on how many jobs are open in the economy, which could provide another clue about the strength of economy amid the new recession concerns. An inflation report is expected Wednesday.
This is a developing story. Please check back for updates.
(DALLAS) — A shift is on the horizon at Southwest Airlines. The carrier known for its customer-friendly policies and affordable airfare announced changes to its baggage and fare structure in an effort to cater to a broader range of travelers.
While the low-cost airline has long stood out for offering two free checked bags for all passengers, starting May 28, some customers will see charges for checked baggage.
The most notable change from the Dallas-based carrier that was announced Tuesday impacts those not holding certain status levels with Southwest’s Rapid Rewards program.
Southwest Airlines will continue to offer two free checked bags to Rapid Rewards A-List Preferred Members as well as its Business Select travelers.
A-List Members and other select customers will still receive one free checked bag, the airline said. However, those without qualifying status will now face a charge for their first and second checked bags, subject to weight and size limitations.
“We have tremendous opportunity to meet current and future customer needs, attract new customer segments we don’t compete for today, and return to the levels of profitability that both we and our shareholders expect,” President and CEO Bob Jordan said.
Why Southwest is changing baggage fees?
For passengers traveling on lower-priced fares, such as Wanna Get Away or Wanna Get Away Plus, the changes outlined reflect a move toward more targeted options for a range of travelers from budget conscious to frequent flyers, which the airline hinted at in December.
Southwest Rapid Rewards program points changes, assigned seats and more
In addition to the new baggage fees, Southwest’s Rapid Rewards program will also have some changes for earning points.
Customers who fly Business Select will earn more points, while those on lower-tier options — like Wanna Get Away fares — will earn fewer.
The airline is also introducing a new Basic fare category for the lowest-priced tickets starting May 28 ahead of rolling out assigned seating and extra legroom options.
“We’re evolving our business to create more choice for our current and future customers,” Jordan said.
Southwest is working to expand its reach with flights now available to book through Expedia, and an industry-standard partnership with Icelandair.
Flight credits issued for tickets purchased on or after May 28 will expire one year or earlier from the date of ticketing, depending on the fare type purchased.
(NEW YORK) — U.S. stock futures traded slightly higher on Tuesday, following Monday’s major selloff as markets digested President Donald Trump’s comments that there would be a “period of transition” as the economy adjusted to a global trade war.
Dow futures traded up 156 points, or about 0.36%.
The Dow Jones Industrial Average closed down about 2% on Monday, while the S&P 500 declined 2.7%. The tech-heavy Nasdaq plummeted 4%, which amounted to more than $1 trillion in losses, according to Bloomberg.
Asian stocks, which opened sharply lower on Tuesday, following the U.S. selloff, recovered some ground. And European stocks were trading mixed.
The Bureau of Labor Statistics is expected Tuesday morning to release a report on how many jobs are open in the economy, which could provide another clue about the strength of economy amid the new recession concerns. An inflation report is expected Wednesday.
The main driver of the recent declines appears to be America’s trade war, with investors watching the administration’s latest plans on trade and tariffs. The selloff coincided with retaliatory tariffs against the U.S. following levies last week on Canada, Mexico and China, some of which were delayed.
This is a developing story. Please check back for updates.
(NEW YORK) — Since Elon Musk went to Washington, D.C., to slash the government alongside President Donald Trump, the stock of his electric car company Tesla has taken a significant hit, tumbling nearly 48% this year. During an interview this week, Musk addressed the difficulties.
“You’re giving up your other stuff,” Fox Business’ Larry Kudlow asked Musk during an interview. “How are you running your other businesses?”
“With great difficulty,” Musk replied with a sigh.
On Monday, Tesla stock closed down 15% after its worst trading day in five years. Stock in the company has dropped every week since Musk went to Washington, wiping out more than $700 billion in market value. And Musk’s personal net worth has dropped $148 billion since Inauguration Day, according to the Bloomberg Billionaire Index.
But it’s not just Musk who is taking a hit. The stock plunge has caused outrage among some shareholders, who have publicly questioned Musk’s commitment to his electric vehicle company or called on the Tesla board to replace him.
Another group that’s now sounding the alarm: pension fund managers.
“This is a real cost to real people,” Illinois State Treasurer Michael Frerichs told ABC News. “We’re talking about firefighters, police officers, nurses who work in public. Their retirement dollars are at stake.”
Frerichs, a Democrat, said he believes the drop in stock is due to Musk’s work leading the governmental cost-cutting efforts at the Department of Government Efficiency, or DOGE. It’s deeply political work, Frerichs says, that’s driving half the country away from buying his cars.
“Michael Jordan was famous here for not being involved in Democrat politics, because, as he said, even Republicans buy sneakers, and he knew he didn’t want to lose those customers,” Frerichs said.
New York City Comptroller Brad Lander, who oversees approximately $1.2 billion in Tesla stock through the city’s pension funds, echoed that sentiment.
“There’s no real leadership. It is at the bottom of his list. And so we have not had at Tesla a CEO focused on selling EVs, on growing the company, on making money and returns for shareholders,” Lander told ABC News.
Lander, a Democrat who is running for mayor in New York City, said he still has faith in the Tesla stock — but that it won’t be endless.
“But look, if they can’t count on this stock, you know, and we have to look elsewhere in the marketplace, that’s how this works,” Lander said.
Tesla representatives did not reply to a request for comment from ABC News
Its not just Democrats who have called for answers from Musk. Barstool Sports founder Dave Portnoy — who supported Trump in the 2024 election — said he had to “raise his eyebrows” as a stockholder himself.
“I like DOGE, I like what they’re doing,” Portnoy said in an interview on Fox Business last month. “But let me tell you this. If you are going to send out — and you got to call it both ways — if you are going to send emails to federal workers and say, ‘What have you done for the last five days,’ I think Tesla shareholders are entitled to ask their CEO, Elon Musk, ‘What have you done for Tesla the last five days?'”
“Seemingly all he cares about right now is DOGE,” Portnoy said. “Now, could it be coincidence the stock is down 25% since he really started this? I guess. But I think it’s fair as a shareholder of Tesla to say, ‘What are you doing for shareholders?'”
Some who are critical of Musk’s role in cutting the federal workforce have targeted Tesla, vandalizing vehicles and protesting at dealerships around the country.
“We’re here today rallying against Elon and what he’s done,” one Florida protester, Jeff Finkelstein, told a local news outlet. “Ever since Trump’s been in, it’s been more about Musk than Trump and we’re just showing our frustration.”
In Massachusetts, police asked the public for help after a suspect allegedly vandalized Teslas with images of Musk. The suspect, when confronted, said he had a right to do so because it’s his “free speech,” according to a social media post.
Musk himself replied to the post, writing, “Damaging the property of others, aka vandalism, is not free speech!”
(NEW YORK) — U.S. stocks dropped in early trading on Monday, suffering widespread losses a day after President Donald Trump declined to rule out the possibility of a recession.
The Dow Jones Industrial Average fell 515 points, or 1.2%; while the S&P 500 declined 1.4%. The tech-heavy Nasdaq plummeted nearly 2%.
Tesla, the electric carmaker led by Elon Musk, sank nearly 6%. United Airlines and Delta each fell more than 5.5%.
The selloff extended a drop-off from the previous week amid uncertainty stoked by Trump levying tariffs against Canada, Mexico and China, some of which were withdrawn or delayed. The S&P 500 recorded its worst week since September.
When asked about a potential recession in an interview broadcast on Sunday, Trump said tariffs imposed in recent days could bring about a “period of transition.”
“I hate to predict things like that,” Trump told Fox News in an interview taped on Thursday. “It takes a little time, but I think it should be great for us.”
In response to a question later on Sunday about his reluctance to rule out a recession, Trump said: “I tell you what, of course you hesitate. Who knows?”
Since Inauguration Day, the Dow Jones Industrial Average has fallen 2.5%. The S&P 500 has dropped 5% over that period, while the Nasdaq has plummeted 9%.
The market slowdown has coincided with some worse-than-expected overall economic performance.
A jobs report on Friday showed U.S. employers hired 151,000 workers last month, falling short of the expected 170,000 jobs added.
In February, a key gauge of consumer confidence registered its largest monthly drop since August 2021, the nonpartisan Conference Board said last month. The share of consumers who expect a recession within the next year surged to a nine-month high, the data showed.
Still, some measures of consumer sentiment improved. Consumers’ assessment of current business conditions moved higher, while an uptick in purchasing plans for a home extended a monthslong recovery.
Mortgage rates also have dropped for seven consecutive weeks, FreddieMac data showed. The average rate for a 30-year fixed mortgage stands at 6.63%, its lowest level since December.
This is a developing story. Please check back for updates.
