U.S. Stocks Slide on Economic and Trade Uncertainty:
U.S. stocks declined during yesterday’s trading session, impacted by data indicating
a slowdown in manufacturing activity in the United States
and the approaching implementation of tariffs on Mexican and Canadian imports.
Contents
Energy Information Administration Report
U.S. stocks fell sharply during yesterday’s trading session,
affected by data showing a slowdown in U.S. manufacturing activity
and the imminent implementation of tariffs on Canadian and Mexican imports.
The Dow Jones Industrial Average dropped 0.95%, or 415 points, to 43,425 points.
The S&P 500 declined 0.9%, or 55 points, to 5,899 points,
while the Nasdaq Composite saw a 1.4% drop, or 265 points, to 18,581 points.
Data from the Institute for Supply Management (ISM)
revealed that the Manufacturing PMI fell to 50.3 points in February,
down from 50.9 in January.
The employment sub-index marked its first contraction in eight months,
raising concerns about a potential economic slowdown in the U.S.
These stock market declines come amid uncertainty regarding future economic growth,
especially with the upcoming 25% tariffs on Canadian and Mexican goods.
Rising tensions between Washington and Kyiv have also led investors to reduce their risk exposure.
Trump Signs Order to Increase Tariffs on China and Maintains Duties on Canada and Mexico
On Monday, U.S. President Donald Trump signed an executive order increasing tariffs
on Chinese imports to 20%, accusing Beijing of failing to combat fentanyl trafficking.
A White House post on the X platform stated that this decision raises tariffs
from 10% to 20%, fulfilling a previous promise made by Trump.
Trump also confirmed that Mexico and Canada cannot avoid the tariffs set to take effect within hours.
These 25% tariffs had been temporarily suspended after both countries committed
to tightening border controls and reducing fentanyl smuggling.
However, Trump argues that these commitments have not been fully implemented.
The United States is a key trading partner for Canada, China, and Mexico,
but the most significant impact of these measures is expected to fall on its North American neighbors.
As the world’s second-largest economy, China may have more capacity to absorb the consequences.
Canadian Foreign Minister Mélanie Joly described Trump’s tariffs on Canadian goods
as an “existential threat” to her country, warning that “thousands of jobs in Canada are at risk.”
Energy Information Administration: U.S. Fuel Stockpiles to Hit 25-Year Low in 2026
The U.S. Energy Information Administration (EIA) has forecasted a sharp decline
in the country’s inventories of the three major fuel types—gasoline,
distillates, and jet fuel—in 2026, reaching the lowest levels since 2000.
According to the EIA’s official report, fuel stockpiles are expected to drop to 375 million
barrels by the end of next year, compared to 358 million barrels in 2000.
This decline is attributed to reduced petroleum product output
in the U.S. following the closure of two refineries, alongside rising demand in 2026.
According to EIA data, U.S. gasoline consumption will decline
by around 1% next year after remaining stable in 2025,
while jet fuel consumption will reach an all-time high.
U.S. Stocks Slide on Economic and Trade Uncertainty