The stock market slid on Tuesday at closing, after a rally that had sent the S&P 500 and Nasdaq up more than 4% earlier in the day.

The Dow Jones Industrial Average closed down 320 points – or 0.8%; while the tech-heavy Nasdaq Composite index dropped 2.2%, and the S&P 500 fell 1.5%, putting the index on the brink of a bear market — a term that indicates a 20% drop from a previous peak. Since President Trump’s tariff announcement last week, the S&P 500 and Nasdaq have each fallen more than 12%.

Before markets opened on Tuesday, Trump said in a post on Truth Social that he had held a “great call” with South Korea’s acting president, Han Duck-soo, about the terms of a trade agreement: “we have the confines and probability of a great DEAL for both countries. Their top TEAM is on a plane heading to the U.S., and things are looking good. We are likewise dealing with many other countries, all of whom want to make a deal with the United States. Like with South Korea, we are bringing up other subjects that are not covered by Trade and Tariffs, and getting them negotiated also. “ONE STOP SHOPPING” is a beautiful and efficient process!!!”

However, the standoff between the U.S. and China continued, with White House press secretary Karoline Leavitt confirming that the President’s threat of an additional 50% tariff on China will go into effect early Wednesday — bringing the total tariff rate against Beijing to 104%.

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