Wall Street Plunges Amid Trade Deal Doubts and Fed Watch

Hold onto your hats, folks! U.S. stocks took a nosedive on Tuesday, rocked by a double whammy of trade deal jitters and pre-Fed meeting nerves. The market's on edge, and it's showing!

The Dow Jones Industrial Average tanked 389.83 points, a brutal 0.95% drop. The S&P 500 wasn't far behind, losing 0.77%, while the Nasdaq Composite slid 0.87%. It's a bloodbath out there!

The sell-off kicked into high gear after President Donald Trump threw cold water on hopes for quick trade deals during a sit-down with Canadian Prime Minister Mark Carney. "We don't have to sign deals," Trump declared, flipping the script on his own previous comments and those of Treasury Secretary Scott Bessent, who'd been hinting at major agreements on the horizon. Talk about a plot twist!

Over at Tesla, shares took a 2% hit as new car sales in Germany and the U.K. hit the skids, despite the buzz around electric vehicles. Tech giants like Nvidia and Meta felt the pain too, and Goldman Sachs dragged the Dow down with it. It's a rough ride for investors!

Federal Reserve Meeting

But wait, there's more! The Federal Reserve kicked off its two-day policy meeting on Tuesday, and all eyes are on what they'll do next. The word on the street is they'll keep rates steady, with futures markets giving just a 2.7% chance of a cut. But don't count on it!

Investors are hungry for any crumbs of wisdom from Fed Chair Jerome Powell on how they're reading the economic tea leaves, especially with these tariff tensions heating up again.

Sure, Monday's service sector data was surprisingly strong, but the market's still sweating over what Trump's flip-flopping on trade could mean down the road. It's a wild ride, and no one knows where it's headed!

And if that's not enough to keep you up at night, hedge fund guru Paul Tudor Jones is sounding the alarm that even partial tariffs could hit the economy like a tax hike, potentially knocking several percentage points off growth. Buckle up, it's gonna be a bumpy ride!