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Wall Street Sinks as Tariff Jitters and AI Volatility Rattle Investors

U.S. stocks tumbled in a broad sell‑off today, with the Dow Jones Industrial Average plunging roughly 800 points as renewed tariff concerns and a wave of AI‑related volatility shook market confidence. The S&P 500 and Nasdaq also slid sharply, extending a week of choppy trading driven by political uncertainty and rapid shifts in tech sentiment. Investors reacted to escalating fears that new tariff measures proposed by President Trump could disrupt global supply chains and pressure corporate earnings. Tech stocks—already sensitive to policy shifts—were hit particularly hard as traders unwound positions tied to what analysts have dubbed the “AI scare trade,” a fast‑moving rotation away from high‑growth names. Market strategists noted that the combination of geopolitical tension, policy ambiguity, and stretched valuations created a perfect storm for a sharp pullback. Still, some analysts argue that the downturn reflects a recalibration rather than a fundamental shift, pointing out t...
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Canada Implements Digital Services Tax Amidst Controversy

Canada has officially enacted a digital services tax (DST), which imposes a three percent levy on revenue from Canadian users by foreign tech giants, retroactive to 2022. This move has sparked significant debate and concern among businesses and the United States government, with fears of potential trade repercussions.

Deputy Prime Minister and Finance Minister Chrystia Freeland defended the decision, stating that it was unfair for Canada to indefinitely delay its own measures while waiting for a multilateral agreement on digital service taxes. She emphasized the need for tech companies to pay their fair share of taxes on revenue earned without a physical presence in Canada.

The DST is expected to affect companies with global annual income of at least $1.1 billion and Canadian revenues greater than $20 million a year. While the tax aims to level the playing field and support essential investments within the country, it has raised concerns about adding irritants to the trade relationship with the United States, especially during a sensitive time with upcoming presidential and congressional elections.

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