Dow Drops 628 Points as Oil Nears $100 — SkimNews
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- The Dow Jones Industrial Average dropped 628 points (1.2%) to 52,786, with the S&P 500 falling 0.6% to 7,674 and the Nasdaq slipping 0.3% to 26,421 in the session.
- Brent crude climbed toward $100 a barrel and WTI approached $93 after Iran said it was close to reaching a deal with Oman to manage traffic through the Strait of Hormuz.
- The 10-year US Treasury yield rose to approximately 4.8%, with markets pricing in a 58% chance of a 25-basis-point Federal Reserve rate hike at the upcoming policy meeting.
- Canada imposed retaliatory tariffs ranging from 15% to 50% on US goods matching the $27.8 billion trade value targeted by Trump's latest duties, effective Tuesday.
- Prime Minister Mark Carney warned Canadians that reducing reliance on the US would carry a cost, but argued the alternative of standing still would be more damaging as he pledged new trade agreements and diversification.
- Trump had imposed 50% tariffs on nearly $28 billion of Canadian goods after trade talks collapsed last month; Canada claimed the US sought measures that could limit its ability to trade with other countries and protect French language and culture.
Why it matters: With Brent crude near $100 and Canadian retaliatory tariffs live, investors priced a 58% probability of a Fed rate hike rather than a cut, raising the stakes for Wednesday's PPI and CPI prints. Canada absorbing real economic pain to match $27.8B in US tariffs signals that bilateral escalation now has a floor, not a ceiling.
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