The Dow drops 478 points as Trump shrugs off a market rout and says more tariffs are coming

Stocks ended lower on Tuesday, extending Monday’s rout, as President Donald Trump doubled down on his trade war with Canada and a warning from Delta Air Lines sent many travel-related stocks tumbling.

The Dow Jones Industrial Average plunged 478 points, or 1.1%, and the S&P 500 slid 0.8%. The Nasdaq closed down about 0.2% as a 1.7% rebound in Nvidia (NVDA

) and gains in some other Big Tech stocks weren’t enough to save the day. Shares of Apple (AAPL) and Google parent Alphabet (GOOGL) both declined.

Trump escalated his dispute with Canada by saying he would double tariffs on the country’s aluminum and steel to 50% after Ontario enacted a levy on electricity it sends to the U.S. The administration remains confident of the long-term benefit of its economic changes, a spokeswoman said.

“We are in a period of economic transition from that economic nightmare under a president who had no idea what he was doing, never held a private sector job in his life, into a golden age of American manufacturing,” Karoline Leavitt told reporters at the White House.

One bit of good economic news came through on Tuesday: U.S. job openings rose to 7.74 million in January from a revised 7.51 million in December, a sign that the labor market was holding steady as President Joe Biden left office. The consensus estimate had been for 7.6 million openings.

Tesla (TSLA) stock staged a modest comeback from yesterday’s 15% plummet, rising 3.8%, as Trump said he’d buy one of Elon Musk’s EVs.

Delta Air Lines (DAL) stock fell 7.3% after the company cut its first-quarter profit and sales forecasts on weaker domestic travel demand. It retained its full-year outlook. American Airlines (AAL), Expedia (EXPE), Booking Holdings (BKNG), Hilton (HLT) and Airbnb (ABNB) shares also declined. Disney (DIS) fell 5%, extending its recent decline.

Retailers also got pummeled. Kohl’s (KSS) plunged 24% after its quarterly earnings missed consensus and its projections also fell short. Dick’s Sporting Goods (DKS) fell 5.7% after a disappointing earnings outlook outweighed better-than-expected fiscal fourth-quarter results.

Southwest Airlines (LUV) stock, by contrast, jumped 8.3% after the carrier said it will abandon its free-bags policy for most passengers, which analysts said will boost revenue but will also damage its brand and erode customer loyalty.

Oracle (ORCL) dropped 3.1% after its fiscal third-quarter earnings fell short of analysts’ expectations.

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