In This Story
U.S. stocks fell on Tuesday as President Donald Trump’s newly imposed 25% tariffs on goods from Canada, Mexico, and China prompted retaliatory measures from some of the affected countries.
China imposed additional duties of up to 15% on certain U.S. products. Ottawa retaliated with 25% tariffs on $30 billion worth of U.S. goods starting Tuesday, rising to cover $125 billion of merchandise in 21 days. Canada’s provinces are taking their own actions, and irate citizens are boycotting U.S. products.
As the day ended in New York, the Nasdaq Composite dipped by 0.3%, while the Dow Jones Industrial Average shed 670 points or 1.5%. The S&P 500, which had its worst day of the year on Monday, dropped 1.2%.
Here are stocks to watch on Tuesday.
Best Buy
Best Buy (BBY+3.28%) stock dropped after the electronics retailer reported fourth-quarter results that exceeded Wall Street’s expectations. However, CEO Corie Barry indicated that prices for U.S. consumers are likely to increase due to President Donald Trump’s tariffs.
Chipotle
Chipotle Mexican Grill (CMG-0.57%) shares declined due to concerns about the restaurant chain’s dependence on avocados, with 50% of its supply coming from Mexico. As tariffs on imports from Mexico take effect, investors are worried about the potential impact on the company. The company has said its diverse supply chain could help it withstand tariffs.
Nvidia
Nvidia (NVDA+0.54% stock fell as concerns mounted over AI-related spending and the impact of new tariffs. The chip manufacturer seems to be cautious about limitations on the export of AI chips. Nvidia stock plunged Monday after Singapore said it’s investigating whether servers shipped to Malaysia containing chips barred from China ended up in the mainland.
Super Micro Computer
Super Micro Computer (SMCI+0.90%, a key player in AI hardware, also declined in the morning, mirroring Nvidia’s slump. Investors are uncertain about how Trump’s tariffs could shape the future of the AI industry. However, the stock recovered in the afternoon by gaining 10%.
Target
Shares of Target (TGT+1.68%) were down as it beat Wall Street’s earnings expectations. For the fourth quarter, the company reported revenue of $30.92 billion, about $2.41 earnings per share. But Target said it expects a “meaningful” decline in first-quarter profits compared to the same period last year. The cautious outlook stems from “ongoing consumer uncertainty,” weaker sales in February, and mounting concerns over the impact of tariffs. President Donald Trump’s new tariffs on imported goods from Canada, Mexico, and China — which together accounted for almost 42% of total imports in 2024 — went into effect early Tuesday.
Tesla
Tesla (TSLA+1.13% stock declined due to rising fears about tariffs among investors. It is likely that the new tariff will raise car prices.
Moreover, a day after Morgan Stanley analyst Adam Jonas designated Tesla stock as a “Top Pick” in the U.S. automotive sector and raised the price target, Bank of America reduced its price target for the stock from $490 to $380 while maintaining a Neutral rating.