Market Volatility Strikes Post-Election Rally

Major Wall Street indexes fell as investors took profits after a post-election rally, facing caution ahead of upcoming U.S. economic data. Concerns over tariffs and inflation from Trump's policies contributed to the decline. The Federal Reserve indicated readiness to adjust policy amid economic signals.

Major Wall Street indexes closed lower on Tuesday, reflecting investor caution amidst an economic data-heavy week. The significant drop comes as traders recalibrate expectations following a post-election rally spurred by President-elect Donald Trump's economic proposals.

European markets also felt the strain, falling 2% after concerns emerged over the potential negative impacts of Trump's tariff policies. Stocks linked to Trump's agenda, like Tesla, reversed some gains. Additionally, rising U.S. Treasury yields pressured equities, challenging the optimistic outlook on growth.

Market participants now eye Wednesday's inflation data and the Federal Reserve's potential policy responses. Comments from Fed officials suggest readiness to act if economic conditions warrant, further indicating a complex economic landscape amid geopolitical tensions.

(With inputs from agencies.)