S&P 500 hit lowest close in one year due to US tariff policies

Reuters reports the S&P 500 plummeted on Tuesday and closed below 5,000 for the first time in nearly a year. Investor hopes faded for a delay in Donald Trump's imposition of import tariffs or concessions from the US before Wednesday's midnight deadline.

Since the announcement of sweeping duties on US trade partners, the S&P 500 has lost $5.83 trillion in market value. This marked the largest four-day losses since its creation in the 1950s, Reuters says. According to LSEG, the S&P 500 fell more than 12% following the news about the new tariffs.

Earlier on Tuesday, the index rose more than 4%, as markets hoped for a softening of Trump's stance on trade policy or a delay in imposing import duties. However, Karoline Leavitt, White House press secretary, says the US President expects the tariffs to go into effect despite nearly 70 countries reaching out to begin negotiations. 

On Tuesday, the S&P 500 declined 1.57%. The last time the index closed below the level of 5,000 was April 19, 2024, Reuters adds.