US benchmark equity indexes closed lower on Tuesday as President Donald Trump increased proposed steel and aluminum tariffs on Canadian goods in response to Ontario's 25% duty on electricity sent to the US.

The Nasdaq Composite fell 0.2% to 17,463.1, while the S&P 500 decreased 0.8% to 5,572.1. The Dow Jones Industrial Average was down 1.1% to 41,433.5. There was a general downward trend across all sectors while industrials had the steepest drop.

US Treasury yields were higher, with the 10-year rate gaining about 6.9 basis points to 4.3% and the two-year rate was up 5.7 basis points to 4%.

April West Texas Intermediate crude oil decreased 1.6% to $65.99 a barrel Tuesday .

In economic news, US job openings increased to 7.7 million on Jan. 31 from 7.5 million in the previous month, according to a job openings and labor turnover survey conducted by the Bureau of Labor Statistics.

Small business optimism in the US declined in February as uncertainty on Main Street grew to the second-highest reading on record, a survey by the National Federation of Independent Business showed.

"With trade conflicts reigniting in March, the level of uncertainty has the potential to rise even higher," TD Economics said. "This would weigh on overall small business confidence, and is likely to manifest itself in weaker investment and hiring decisions."

In company news, Southwest Airlines (LUV) was among the top performers on the S&P 500 with shares up 8.4%. Chief Executive Bob Jordan said at an industry conference that the airline company is ending its policy of hedging against swings in fuel prices to eliminate hedging premium payments.

GE Vernova's (GEV) shares were up after 5.2% after its power conversion and storage business signed a memorandum of understanding with PyroGenesis to start discussions for a multi-year collaboration to develop all electric industrial tools for high-temperature industrial processes.

Teradyne (TER) shares fell 17%. The company said Tuesday that it agreed to acquire privately held Quantifi Photonics.

Kohl's (KSS) shares dropped 24%. The company became the latest retailer to offer a downbeat outlook for 2025 as growing uncertainty weighs on consumers in the world's biggest economy.

The department store chain expects full year earnings between $0.10 and $0.60 a share, below the $1.09 EPS projected by three analysts in a FactSet poll.

Gold gained 0.9% to $2,925.20 per troy ounce, while silver was up 2.7% to $33.40 per troy ounce.