Trade Paths Remain Muddy, Dow Flops Nearly 400

Stocks slipped Tuesday after President Donald Trump’s shaky commentary on global trade deals, dashing hopes that progress will soon be made on the tariff front. Investors also awaited the Federal Reserve’s policy decision.The Dow Jones Industrials stumbled 389.83 points, or 1%, to 40,829The S&P 500 index skidded 43.47 points to 5,606.91The NASDAQ Composite faded 154.58 points to 17,736.32. All three of the major averages posted back-to-back declines. Shares of Tesla shed 1.8% after the company’s new car sales in Britain and Germany fell to their lowest in more than two years in April, even though demand for electric vehicles grew. Goldman Sachs shares dipped 1.8%, pulling the Dow lower. Tech giants Nvidia and Meta Platforms also declined.Stocks wavered after Trump met with Prime Minister Mark Carney on Tuesday afternoon, marking the start of negotiations between the two leaders since Carney assumed office earlier last month.Trump during the meeting walked back on promises that trade deals are on the horizon, saying, “We don’t have to sign deals.” His statement contradicts Treasury Secretary Scott Bessent’s comments earlier this week. Bessent told the media on Monday that “we’re very close to some deals,” echoing comments Trump made himself on Sunday that agreements could come as early as this week.The Fed began its two-day policy meeting on Tuesday, with a decision scheduled for Wednesday. The central bank is expected to keep rates steady, with fed funds futures trading suggesting just a 3.1% chance of easing.Still, traders will be listening for Fed Chair Jerome Powell’s comments on his economic outlook.Prices for the 10-year Treasury gained ground, lowering yields to 4.31% from Monday’s 4.34%. Treasury prices and yields move in opposite directionsOil prices progressed $1.92 to $59.05 U.S. a barrel. Prices for gold skyrocketed $108.40 to $3,430.70 U.S.