NEW YORK, New York - U.S. stocks closed firmly in the red on Tuesday, dragged down by a sharp selloff in technology shares, in a session that underscored the divergent fortunes of U.S. equity markets.

The Standard and Poor's 500 fell 33.67 points, or 0.45 percent, to finish at 7,503.76. The broad-based index traded between a session low of 7,478.63 and a high of 7,536.06, as declining issues outnumbered advancers by a wide margin. Volume on the index reached 2.913 billion shares.

The Dow Jones Industrial Average posted a more modest decline, shedding 131.35 points, or 0.25 percent, to close at 52,924.56. The blue-chip index moved within a range of 52,774.17 to 53,289.30 during the session, with volume totalling 435.387 million shares. The Dow's relative resilience reflected strength in more traditional industrial and financial names that helped cushion the broader decline.

The tech-heavy NASDAQ Composite bore the brunt of the selling pressure, diving 302.47 points, or 1.16 percent, to end the day at 25,818.69. The index's outsized drop came as megacap technology and growth stocks came under renewed pressure, extending a recent pattern of volatility in the sector. Trading volume on the Nasdaq reached 6.388 billion shares.

The losses on Wall Street followed a global session that saw Asian markets tumble on tech concerns, though European bourses had shown a mixed picture. Investors continued to grapple with questions about interest rate trajectories and corporate valuations, with technology names particularly sensitive to shifting expectations around monetary policy.

U.S. dollar trades sideways in tepid Tuesday FX trading

Foreign exchange markets saw a relatively subdued session on Tuesday, with the U.S. dollar posting mixed results against major peers as traders digested a quiet economic calendar and waited for clearer directional cues from central bank policymakers.

The euro registered a slight adecline against the greenback, with the EUR-USD pair dipping to 1.1415, representing a loss of 0.23 percent for the single currency. 

Against the Japanese yen, the dollar held its ground firmly. The USD-JPY pair traded at 162.07, down a fractional 0.02 percent on the day, as the yen remained under pressure from the persistent interest rate differential between the U.S. and Japan. The pair continued to hover near levels that have kept traders vigilant for any potential intervention from Japanese authorities.

Sterling softened slightly, with the GBP-USD pair slipping to 1.3359, a decline of 0.25 percent for the British pound. The modest retreat came as investors weighed the latest UK economic data against the Bank of England's cautious approach to further rate cuts.

The Australian dollar also lost ground, with the AUD-USD pair dropping to 0.6931, down 0.35 percent. The move reflected broader risk-off sentiment that emerged during Asian trading hours, as well as ongoing concerns about the outlook for China's economy, a key trading partner for Australia.

The Canadian dollar was essentially flat against its U.S. counterpart. The USD-CAD pair closed at 1.4198, showing no net change on the session, though it had traded within a narrow range and was last seen down 0.05 percent from earlier levels. The currency pair found support from stable oil prices, which tend to underpin the loonie.

The most notable mover of the session was the Swiss franc, which weakened sharply against the dollar. The USD-CHF pair rose to 0.8083, a gain of 0.40 percent for the greenback. The move came as investors continued to favor the U.S. currency's yield advantage over the low-yielding franc, with Swiss National Bank policy remaining accommodative.

Trading desks characterized the session as range-bound, with most major pairs staying within recent bands ahead of key U.S. inflation data and remarks from Federal Reserve officials later in the week. The dollar's overall performance remained mixed, reflecting the absence of a clear catalyst to drive sustained directional momentum.

Global markets end Tuesday divided as tech selloff weighs on Asia, European bourses retreat

Global stock markets closed Tuesday with a decidedly uneven tone, as a sharp selloff in Asian technology shares dragged on sentiment, while European benchmarks mostly finished lower.

Canada's S&P/TSX Composite Index bucked the negative trend in the U.S., advancing 60.27 points, or 0.17 percent, to close at 52,272.59. The index's gain came on volume of 298.867 million shares, as strength in energy and financial sectors helped offset weakness in rate-sensitive areas of the market.

In a session defined by regional divergence, the FTSE 100 in London bucked the broader continental European trend, edging up 14.11 points, or 0.13 percent, to close at 10,665.88. The index traded between a low of 10,651.17 and a high of 10,747.01 during the day.

European markets, however, were firmly in the red. Germany's DAX tumbled 352.64 points, or 1.37 percent, to finish at 25,465.25, while in France, the CAC 40 shed 43.63 points, or 0.51 percent, ending the session at 8,436.24.

The broader EURO STOXX 50 dropped 78.15 points, or 1.22 percent, to 6,319.86, and the Euronext 100 Index fell 21.65 points, or 1.12 percent, closing at 1,912.69. Belgium's BEL 20 also slipped, losing 8.02 points, or 0.14 percent, to 5,724.43.

The biggest losses of the day were felt across Asia, where South Korea's KOSPI Composite Index plunged by a staggering 395.02 points, or 4.91 percent, to close at 7,656.31—its worst single-day drop in months. J

In Japan, the Nikkei 225 followed suit, diving 1,480.73 points, or 2.12 percent, to 68,256.96. Taiwan's TWSE Capitalization Weighted Stock Index also suffered a heavy blow, cratering by 1,077.28 points, or 2.31 percent, to 45,479.11.

Mainland Chinese equities weren't spared, with the SSE Composite Index losing 51.00 points, or 1.26 percent, to finish at 3,990.24.

In Hong Kong, the HANG SENG INDEX declined 119.43 points, or 0.51 percent, ending at 23,496.89 after trading between 23,398.27 and 23,820.92.

Elsewhere in the Asia-Pacific region, Australia's S&P/ASX 200 dropped 27.10 points, or 0.31 percent, to 8,803.90, while the broader ALL ORDINARIES fell 32.30 points, or 0.36 percent, to 9,004.70.

In Malaysia, the FTSE Bursa Malaysia KLCI edged down a marginal 0.60 points, or 0.04 percent, to 1,682.93, and New Zealand's S&P/NZX 50 INDEX GROSS was virtually flat, slipping just 0.31 points, or 0.00 percent, to 13,762.79.

The IDX COMPOSITE in Indonesia, however, managed a solid gain, rising 70.43 points, or 1.19 percent, to 5,986.50.

In Singapore, the STI Index was one of the region's brighter spots, advancing 82.43 points, or 1.57 percent, to close at 5,342.24 after hitting a low of 5,261.12.

India's S&P BSE SENSEX posted a modest loss, slipping 104.35 points, or 0.13 percent, to 78,180.72,. 

In the Middle East, the EGX 30 Price Return Index in Egypt gained 503.40 points, or 0.96 percent, to 53,006.10 on volume of 697.772 million shares, while Israel's TA-125 dropped 82.08 points, or 1.98 percent, to 4,062.69.

In South Africa, the Top 40 USD Net TRI Index fell 53.05 points, or 0.78 percent, to 6,746.09.

The divergent session underscored ongoing investor concerns over global interest rate trajectories, with tech-heavy markets bearing the brunt of selling pressure, while select European and Asian bourses found pockets of support.

(This report incorporates quotes retrieved with the assistance of artificial intelligence).

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