Tariff Turmoil: Gloomy Start for U.S. Stock Markets

U.S. stock markets are poised for a challenging start to the quarter as President Trump prepares to announce broad tariffs aligning U.S. duties with other nations. Concerns over the tariffs' economic impact, coupled with significant AI investments by tech firms, have contributed to Wall Street's recent struggles.

U.S. stock indexes were set to open lower on Tuesday, signaling a bleak beginning to the quarter. Investors are preparating for President Trump's upcoming wide-ranging tariff announcements, termed 'reciprocal tariffs,' which aim to match U.S. duties with those of other countries.

The first quarter saw widespread economic concern among investors due to aggressive AI investments by tech companies and the looming impact of the tariffs. The S&P 500 benchmark index ended the quarter down 4.6%, its worst three-month period since July 2022, as futures fell following reports from the Washington Post.

By mid-morning Tuesday, major indexes had dipped, with investors seeking refuge in government bonds and gold. Fears of economic slowdown and inflation have added to market volatility, with increased tariffs on Chinese goods and automotive imports expected. Meanwhile, firms like Tesla and Johnson & Johnson faced distinct challenges impacting their market performance.

(With inputs from agencies.)