Dow drops 500 points as US-China trade tensions escalate once again

Michelin shares fell after the tiremaker lowered its financial guidance for the year following a bigger-than-expected sales slump in North America.

The stock declined as much as 11% in Paris on Tuesday, the steepest intraday drop in more than five years. It’s down around a fifth this year. Peer Continental AG also fell in Frankfurt.

The French company now sees operating income for this year in a range between €2.6 billion ($3 billion) to €3 billion at constant exchange rates, Michelin said late Monday, compared with a previous target of more than €3.4 billion. The weaker dollar also contributed to the downgrade.

While the outlook cut was expected, it was “worse than feared,” Citi analyst Ross MacDonald wrote in a note. “Weak truck, agriculture and construction demand, trade down risks and tariff headwinds could persist into 2026.”