U.S. stocks are drifting Tuesday following President Donald Trump’s latest tariff escalation and after the Federal Reserve hinted interest rates may not change for a while. The S&P 500 was 0.1% higher in the market’s first trading since Trump announced 25% tariffs on all foreign steel and aluminum coming into the country.

Wall Street held relatively firm after President Trump’s latest tariff escalation and after the Federal Reserve hinted interest rates may not change soon.

"If it escalates into bilateral tariffs, we estimate an 8% hit to EPS assuming unitary elasticity," Bank of America analysts said.