The Globe and Mail reports in its Wednesday edition that Canada's main stock index posted on Tuesday its biggest decline in two months as investors worried about Japan's fiscal health and the potential for an escalating trade clash between the United States and Europe. A Reuters dispatch to The Globe says the S&P/TSX Composite Index ended down 340.68 points, or 1 per cent, at 32,750.28, pulling back from a record closing high on Monday. All three major Wall Street indexes also closed well down in a broad sell-off triggered by concerns over fresh tariff threats from U.S. President Donald Trump against Europe. "There is this revisit of 2025 tariff wars," said Ben Jang, portfolio manager at Nicola Wealth. "Eventually, like last year, cooler heads will prevail but this current ask is quite aggressive and the threat of escalation is there and is quite high." Global sovereign debt markets fell as investors reacted to trade tensions as well as turbulence in Japanese government bonds after Prime Minister Sanae Takaichi's calling of a snap election shook confidence in Japan's fiscal health. The technology sector led declines, ending nearly 4 per cent lower. Industrials lost 2.3 per cent and financials were down 1.5 per cent.