S&P 500 edged lower on Tuesday amid investor concerns over US trade policy uncertainty

The S&P 500 closed slightly lower on Tuesday as investors remained cautious amid uncertainty over US trade policy. Reuters reports that fresh tariff threats from Donald Trump weighed on market optimism, dimming hopes for progress in trade talks with several key partners.

According to the news agency, US stocks tumbled on Monday after the president announced sweeping tariffs on goods from Japan, South Korea, and other nations set to take effect in August. Market volatility subsided on Tuesday, with the S&P 500 showing relative stability as investors assessed the potential impact of the new trade restrictions.

Among the index sectors, energy stocks led gains during yesterday's session, climbing 2.72%. Meanwhile, consumer staples and utilities fell more than 1%.

The Trump administration announced new trade measures, slapping a 50% tariff on copper imports and moving forward with long-threatened semiconductor and pharmaceutical duties. On a brighter note, the US president pointed to progress in negotiations with both the EU and China, Reuters says.