US Equities Decline Amid Fed Meeting and Trump’s Tariff Threats

U.S. equities experienced a downturn on Tuesday, with a particular focus on the Federal Reserve's ongoing two-day policy meeting. Investors are keenly attuned to the potential impact of President Trump's tariffs on the Fed's interest rate decisions and overall economic climate. The S&P 500 index (^GSPC) fell nearly 0.7%, alongside a approximately 0.9% decline in the Dow Jones Industrial Average (^DJI). Meanwhile, the tech-focused Nasdaq Composite (^IXIC) dropped about 0.8%, despite a brief recovery from even steeper losses earlier in the day. As traders await the Fed's interest rate decision scheduled for Wednesday, all eyes are on Chairman Jerome Powell. The consensus is leaning towards a decision to keep rates unchanged, but Wall Street remains eager to hear Powell's insights regarding economic resilience and the repercussions of President Trump's trade ambitions, which have yet to manifest fully in economic statistics. Read more: The latest on Trump's tariffs Over the weekend, President Trump's comments stifled expectations for any tariff easing, provoking a drop in the S&P 500, which recently concluded its longest winning streak in two decades. Trump suggested imposing a 100% tariff on films produced outside the U.S., and affirmed there wouldn't be discussions regarding trade with China's President Xi Jinping this week. In addition, Trump indicated his intention to unveil new tariffs targeting pharmaceuticals shortly after announcing an executive order to streamline pharmaceutical manufacturing regulations in the U.S. Ford (F) saw its stock rebound after initial declines, following the announcement of encouraging earnings despite mentioned uncertainties linked to tariffs. The automaker has withdrawn its 2025 projections, citing a potential $1.5 billion financial impact due to auto tariffs. Similarly, toy manufacturer Mattel (MAT) has also withdrawn its guidance, anticipating price increases for several products. Market attention turned towards earnings reports on Tuesday from firms including semiconductor manufacturer AMD (AMD), server producer Super Micro (SMCI), and electric vehicle manufacturer Rivian (RIVN). Further fueling market fluctuations, Philips (PHG) saw a stock decline exceeding 4% amid tariff apprehensions countering a moderate earnings report for the first quarter, as reported by Yahoo Finance's Anjalee Khemlani. Also, Tesla's (TSLA) share prices dipped by 2% as signs of low demand surfaced amid various market pressures, as detailed by Yahoo Finance's Pras Subramanian. On the energy front, WTI crude oil futures showed a resurgence,