Stocks seesawed to end weaker but well above the day's lows Tuesday in highly volatile trading as on-again/off-again news on tariffs continued to flow from the Trump administration. The market continues to trend down on policy uncertainty and fears about the economy. The Dow Jones industrial average lost 1.1 percent, the S&P 500 fell 0.8 percent, and the Nasdaq was down 0.2 percent. US bond yields rose, the dollar declined, and oil prices rose.

Stocks tanked in the morning on Trump's statement on social media that he would raise tariffs on Canadian steel and aluminum by another 25 percent to reach 50 percent, a response to Ontario's imposition of surcharges on electricity going into New York, Minnesota and Michigan. Stocks recovered some ground later when Trump reversed himself on the additional 25 percent, and the risk-off move moderated further on news of movement toward a Ukraine-Russia ceasefire and resumption of US aid to Ukraine. Still, the level of policy chaos and uncertainty has left investors rattled and has underscored worries that the US economy is headed for a downturn and elevated inflation, both toxic for risk assets.

Market Reflections track market reaction to the trading day's major events. Economic data, policymaker speeches, and company news are featured in this report as well as key indexes and financial instruments.

Understanding why markets respond as they do is fundamental for an investor. Market Reflections help explain how the day's events, news, and data impact the outlook for the economy and for market prices.