04:43 PM EST, 03/04/2025 (MT Newswires) -- US benchmark equity indexes dropped Tuesday as China and Canada imposed tariffs on US products, heightening trade-war concerns.

The Dow Jones Industrial Average fell 1.6% to 42,521, the S&P 500 declined 1.2% to 5,778.2 and the Nasdaq Composite lost 0.4% to 18,285.2. Almost all sectors fell with financials pacing the declines. Technology posted a fractional gain.

US Treasury yields were mixed with the 10-year rate gaining 8.6 basis points to 4.245% and the two-year rate eased 2.6 basis points to 3.984%.

April West Texas Intermediate crude oil dropped 0.2% to $68.25 a barrel Tuesday.

In economic news, Canada implemented an initial tranche of tariffs on $30 billion of US goods in retaliation for 25% tariffs on Canada and Mexico ordered by President Donald Trump.

China imposed 10% to 15% levies on US food and agricultural products while placing 25 US companies under export and investment restrictions.

Mexican President Claudia Sheinbaum said her government would respond with countermeasures, but did not immediately provide details, Reuters reported.

Retaliatory tariffs will impact American agricultural exports, auto parts, and key industries reliant on North American trade agreements, deVere Group said in a note.

In company news, Best Buy ( BBY ) fell 13%, the biggest drop on the S&P. Chief Executive Officer Corie Barry flagged potential price increases due to tariffs and a full-year earnings outlook trailed Wall Street estimates at the midpoint.

Walgreens Boots Alliance ( WBA ) is nearing the completion of a go-private deal with Sycamore Partners for around $10 billion, according to The Wall Street Journal's report. Walgreens shares jumped 5.6%, the third-biggest gain on the S&P.

Super Micro Computer ( SMCI ) shares rose 8.5% with the second-largest gain on the S&P, rebounding from a decline on Monday.

Vistra's ( VST ) current valuation doesn't fully reflect the strength of its core business, which remains well-positioned to grow regardless of data center deals, BofA Securities said. Vistra ( VST ) shares gained 2.4%.

Gold increased 0.9% to $2,927.2 per troy ounce, while silver was up 0.7% to $32.54 per troy ounce.