Stocks bounced off of their session lows late Tuesday but still closed in the red after a day of whiplash from President Trump on tariffs.

For now, the S&P 500 ( ^GSPC ) avoided correction territory but still fell about 0.8% to trade at just under 5,600. The Dow Jones Industrial Average ( ^DJI ) shed roughly 500 points, or 1.1%, dragged down by shares of Verizon ( VZ ). The tech-heavy Nasdaq Composite ( ^IXIC ) reversed gains in the last few minutes of trading to fall about 0.2%.

All three indexes closed at their lowest levels since September.

Trump on Tuesday threatened to double tariffs on Canadian metals starting on Wednesday. But he later seemed to walk back those comments after Ontario's premier said the province would suspend an energy tax on neighboring US states.

Earlier in the day, Trump had also threatened to "substantially increase" duties on cars imported into the US from Canada. He said in a post on Truth Social that these tariffs "will, essentially, permanently shut down the automobile manufacturing business in Canada. Those cars can easily be made in the USA!"

The stock follow Monday's brutal sell-off , which saw the Nasdaq fall 4% to log its worst daily loss since 2022 as the "Magnificent Seven" megacaps faltered . But shares of Tesla ( TSLA ) rebounded slightly Tuesday after a show of support from Trump .

The mood on Wall Street has grown increasingly foreboding as investors gauge the chances of stagflation amid deep cuts to firms' economic forecasts and an upending in the markets' thinking on economic growth.

Read more: The latest on Trump's tariff plans

Labor market data on Tuesday largely met expectations, putting the focus on two key inflation reports later this week : February's Consumer Price Index (CPI) print due Wednesday and the Producer Price Index (PPI) for the same month on Thursday.