Stocks moved sharply lower during trading on Tuesday, giving back ground following the significant rebound seen over the two previous sessions. The major averages all moved to the downside, with the tech-heavy Nasdaq leading the pullback.
The major averages ended the day off their worst levels but still firmly negative. The Nasdaq tumbled 304.55 points or 1.7 percent to 17,504.12, the S&P 500 slumped 60.46 points or 1.1 percent to 5,614.66 and the Dow slid 260.32 points or 0.6 percent to 41,581.31.
The sharp pullback on Wall Street came as traders cashed in on the recovery seen over the two previous sessions, which saw the Nasdaq and S&P 500 rebound after hitting six-month lows last Thursday.
Concerns about the impact of President Donald Trump’s trade policies continued to weigh on Wall Street along with worries about the economic outlook despite the release of some upbeat economic data.
The Federal Reserve released a report this morning showing industrial production in the U.S. increased by much more than expected in the month of January.
The report said industrial production climbed by 0.7 percent in February after climbing by a downwardly revised 0.3 percent in January.
Economists had expected industrial production to rise by 0.2 percent compared to the 0.5 percent growth originally reported for the previous month.
The Commerce Department also released a report showing new residential construction rebounded by much more than anticipated in the month of February.
Meanwhile, traders were also looking ahead to the Federal Reserve’s latest monetary policy announcement on Wednesday.
While the Fed is almost universally expected to leave interest rates unchanged, traders will look to the accompanying statement as well as officials’ latest projections for clues about the outlook for rates.
Sector News
Biotechnology stocks saw considerable weakness on the day, resulting in a 1.9 percent slump by the NYSE Arca Biotechnology Index.
Significant weakness was also visible among airline stocks with the NYSE Arca Airline Index falling by 1.8 percent.
Computer hardware, semiconductor and software stocks also saw notable weakness, contributing to the steep drop by the tech-heavy Nasdaq.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Tuesday. Japan’s Nikkei 225 Index shot up by 1.2 percent, while Hong Kong’s Hang Seng Index surged by 2.5 percent.
The major European markets also moved to the upside on the day. While the German DAX Index jumped by 1.0 percent, the French CAC 40 Index climbed by 0.5 percent and the U.K.’s FTSE 100 Index rose by 0.3 percent.
In the bond market, treasuries moved higher over the course of the session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, fell 2.5 basis points to 4.281 percent.
Looking Ahead
The Fed’s monetary policy announcement is likely to be in focus on Wednesday amid an otherwise quiet day on the U.S. economic front.
Business News
U.S. Stocks Move Back To The Downside Following Two-Day Rebound
2025-03-18 20:12:23
