NEW YORK, United States: The Dow Jones falls 588 points, or 1.1%, to 52,826 at Tuesday’s open as rising oil prices and worsening Canada-U.S. trade tensions raised inflation concerns.
The S&P 500 slipped 34 points, or 0.4%, to 7,684. Meanwhile, the Nasdaq Composite fell 119 points, or 0.5%, to 26,388.
Energy markets remained a major focus. Brent crude moved toward USD 100 a barrel, while U.S. West Texas Intermediate approached USD 93.
The moves came as Iran said it was nearing an agreement with Oman on managing traffic through the Strait of Hormuz. Investors remained concerned that disruptions in the region could keep energy costs elevated.
Read: Carney Rejects US Trade Concessions Ahead of CUSMA talks
Trade tensions also increased after Canada’s retaliatory tariffs took effect on September 8. Ottawa imposed duties of 15% to 50% on selected U.S. products. The measures cover about C$27.8 billion, or roughly US$20 billion, of U.S. goods.
Canadian Prime Minister Mark Carney said reducing the country’s dependence on the United States would come at a cost, but argued that failing to diversify would be more damaging.
Read: US Citizens in Canada Face 57% Investment Tax Risk
Investors were also awaiting U.S. inflation data later in the week, including producer prices on Thursday and the consumer price index on Friday. The U.S. Treasury was also scheduled to auction USD 58 billion of three-year notes.
