Photo: Anna Moneymaker (Getty Images) U.S. stocks tumbled Tuesday, with the Dow closing down 390 points, while the S&P 500 and Nasdaq slid 0.77% and 0.87%, respectively. Losses were spread across sectors. AI software giant Palantir was a notable loser, closing the day down by 12%.
In the oil patch, Diamondback Energy (FANG) CEO Travis Stice threw cold water on current prices, telling analysts: “This oil price doesn’t work.” His comments underscore a growing view that U.S. shale production has hit a ceiling, with drillers pulling back because of tightening margins. Meanwhile, during a meeting with new Canadian PM Mark Carney, Trump reignited tensions, claiming the U.S. “doesn’t do much business” with its northern neighbor. It’s a head-scratcher given that Canada is among the U.S.’ most important trading partners, withfresh datashowing increased U.S. demand for Canadian cars, lumber, and energy, as well as the U.S.’ tremendous services surplus, which includes everything from Netflix streams to international tuition.
Marriott beat Q1 earnings expectations but lowered its guidance, citing a drop in U.S. government travel. On Wednesday, expect Fed news, even though a rate cut isn’t anticipated, amid Disney earnings and more. Stocks traded lower through midday U.S. stocks traded lower Tuesday afternoon as investors eyed rising volatility and digested fresh — and troubling — trade data.
The Dow Jones Industrial Average fell 300 points, or 0.74%. The S&P 500 also slid 0.62, and the Nasdaq dropped 0.73%. The small-cap Russell 2000 fell 1%.
Palantir (PLTR) stock dropped 13% Tuesday, despite reporting strong first-quarter results following Monday’s close. The company touted rapid growth across its U.S. operations — but that wasn’t enough to satisfy Wall Street. BEA data shows trade gap doubling as Fed meets The U.S. trade deficit widened more than expected in March, rising to $140.5 billion — a 14% jump from February’s revised $123.2 billion, according to new data released Tuesday by the Census Bureau and Bureau of Economic Analysis.
Economists had forecast a shortfall of $137.6 billion, but imports surged, driving the deficit sharply higher —and revealing a key unintended consequence of rising trade tensions. The report comes just as the Federal Reserve kicks off its two-day policy meeting. While rates are expected to stay put, Fed Chair Jerome Powell’s remarks on Wednesday will be endlessly combed for any signals about future rate directions — and any hints as to political goings-on behind the scenes.
New supply-chain data underscores wider fallout According to trade tracker Vizion, U.S. export activity has slumped across nearly all product categories since early 2025, with agriculture especially hard hit. Ports from Oregon to Savannah are reporting double-digit drops in outbound container traffic, and arrivals from Asia plunged 43% in late April.
