With Tuesday’s Drop, the S&P 500 Has Given Back All of Its Post-Election Gains

US stocks’ post-election run has come full circle. 

The S&P 500 fell more than 1% on Tuesday to close at its lowest level since Election Day on Nov. 5. At just under 5,780, the benchmark index is down 6% from its all-time closing high, which was set less than two weeks ago.

Concerns about the effects of trade policy, with President Donald Trump’s tariffs on Canada and Mexico taking effect today, are currently in focus, but factors including stubborn inflation, the path ahead for interest rates and the health of the AI trade have also weighed on markets, pulling major indexes back from post-election highs.

The tech-focused Nasdaq is also below its Nov. 5 close; so is the small-cap Russell 2000. The Dow industrials are still holding onto post-election gains—but it, along with the other three indexes mentioned here, are all in the red this year. Concerns about the state of the US economy and markets have driven some investors to consider European equities. 

“Considerable downside risks to the growth outlook are mounting,” Deutsche Bank analysts wrote in a note published earlier today. “Trade policy uncertainty has hit historical levels, financial conditions are tightening, sentiment indicators signal weaker growth momentum, and more trade actions are likely to come.”

Trump is set to speak later today. His speech comes ahead of closely watched job-market data due Friday; personal spending fell in January, according to recently released data, while the Federal Reserve’s preferred inflation gauge suggested progress against inflation.