Wall Street started off with a lackluster performance on Tuesday as concerns over geopolitics and President Donald Trump’s trade policies cast a shadow on the markets. Futures for the S&P 500 and the Dow Jones Industrial Average remained steady, while the Nasdaq futures dipped by 0.3% following reports of the Trump administration tightening trade restrictions on China’s semiconductor industry.

The rift in transatlantic relations deepened as the U.S. diverged from its European allies by abstaining from blaming Russia for its invasion of Ukraine in U.N. resolutions. Trump’s recent confrontational stance toward various U.S. trading partners, including threats of tariff hikes and the initiation of a potential trade war, has added to the uncertainty in global markets.

Despite major companies expressing concerns over trade policy uncertainty, President Trump remains resolute on implementing tariffs, leading to economic anxiety and a decline in consumer sentiment. The University of Michigan’s consumer sentiment index dropped significantly in response to fears of tariffs and rising inflation.

In the equities market, Home Depot faced a 2% decline after its forecast failed to meet investor expectations, despite surpassing Wall Street sales and profit forecasts. Bitcoin also experienced a 3% drop to a three-month low at $88,871.

Internationally, European markets saw mixed movements, with Germany’s DAX edging higher and Britain’s FTSE 100 gaining, while Asian markets faced losses, particularly in Japan and Hong Kong. South Korea’s decision to reduce its benchmark interest rate further reflects the efforts to bolster its slowing economy.

Overall, the lingering uncertainties surrounding trade policies and geopolitical tensions continue to impact global markets, prompting caution among investors and businesses alike.