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US job openings rise to 7.74 million in January
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Kohl's slides on bleak annual sales forecast
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Airlines weigh on Dow transports
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Indexes down: Dow 1.14%, S&P 0.76%, Nasdaq 0.18%
(Adds prices, trading volume)
By Chuck Mikolajczak
NEW YORK, March 11 (Reuters) - U.S. stocks fell on
Tuesday, adding to the biggest selloff in months, as investors
worried about the impact of the latest tariff threats on the
global economy.
Trading was volatile, following conflicting tariff updates,
while progress toward a ceasefire between Ukraine and Russia
briefly lifted equities.
The S&P 500 index dropped as low as 5,528.41 points,
briefly marking a 10% fall from its record closing high of
6,144.15 on February 19, which is commonly known as a market
correction. President Donald Trump said he would double tariffs
set to take effect within hours on all imported Canadian steel
and aluminum products to 50%.
The latest tariff threat added to investor unease that
Trump's trade policies, which include tariffs against Canada,
Mexico and China, could trigger an economic slowdown or cause a
recession.
On Monday, the S&P 500 recorded its most significant one-day
drop since December 18, wiping out just over $1.3 trillion in
market value, and a staggering $4 trillion from its recent peak.
The tech-heavy Nasdaq confirmed a 10% correction late last week.
The benchmark S&P index is down more than 3.4% over the past
two sessions, its largest drop since early August.
"That creates just angst and nervousness in the market, so
you're going to continue to get the 'shoot first, ask questions
later' type of reaction, which is exactly what you're getting,"
said Ken Polcari, chief market strategist at SlateStone Wealth
in Jupiter, Florida.
Stocks gained some traction after the U.S. agreed to resume
military aid and intelligence sharing with Ukraine immediately
after talks in Saudi Arabia in which Kyiv voiced readiness to
accept a U.S. proposal for a 30-day ceasefire in its conflict
with Russia, the countries said in a joint statement.
Adding to the positive momentum, Ontario's premier said he
had agreed to suspend the Canadian province's 25% surcharge on
exports of electricity to Michigan, New York and Minnesota.
"The market's looking for something to get hopeful about
after the last week or so, but we always say it's hard to make
changes based on something that might happen," said Chris
Fasciano, chief market strategist at Commonwealth Financial
Network in Waltham, Massachusetts.
"So until you see an idea, whether it's Russia, Ukraine, or
whether you see what tariffs are finally going to be or what
government spending is finally going to be, it's hard to make
wholesale changes in portfolios."
The Dow Jones Industrial Average fell 478.23 points,
or 1.14%, to 41,433.48, the S&P 500 lost 42.49 points, or
0.76%, to 5,572.07 and the Nasdaq Composite lost 32.23
points, or 0.18%, to 17,436.10.
Global markets have been upended since Trump sparked
back-and-forth tariff moves against major trading partners while
recent economic data has indicated the economy may be softening.
A reading on consumer prices on Wednesday will show if progress
is being made on tamping down inflation.
Meanwhile, a U.S. Labor Department report showed job
openings increased in January.
Each of the 11 major S&P sectors was lower, although
technology and consumer discretionary
sectors, the two worst performing sectors on the year, saw the
smallest declines.
Tariff uncertainty has also weighed on consumer sentiment,
with company executives increasingly flagging the impact it can
have on upcoming earnings.
Kohl's forecast a bigger-than-expected drop in
annual comparable sales, sending the retailer's shares
plummeting 24.1%.
Dick's Sporting Goods dropped 5.7% after the
retailer forecast downbeat annual results.
Delta Air Lines ( DAL ) stumbled 7.3% after the carrier
slashed its first-quarter profit estimates by half.
American Airlines ( AAL ) slumped 8.3% after the carrier
forecast a bigger-than-expected first-quarter loss. Weakness in
the airlines helped send the Dow transportation index
down 3.1%.
Oracle lost 3.1% after the cloud company missed
quarterly revenue estimates.
Citi became the latest brokerage to revise its stance on
U.S. stocks, downgrading its recommendation to "neutral."
Declining issues outnumbered advancers for a 1.6-to-1 ratio
on the NYSE and by a 1.1-to-1 ratio on the Nasdaq.
The S&P 500 posted four new 52-week highs and 17 new lows,
while the Nasdaq Composite recorded 22 new highs and 352 new
lows.
Volume on U.S. exchanges was 19.01 billion shares, compared
with the 16.56 billion average for the full session over the
last 20 trading days.