NEW YORK, New York - U.S. stock markets closed firmly in the red on Tuesday, as all three major averages surrendered ground amid a broad-based pullback that weighed heavily on blue-chip industrials and energy shares. The Dow Jones Industrial Average bore the brunt of the selling pressure, tumbling more than 600 points.
The Dow dropped 628.18 points, or 1.18 percent, to finish at 52,786.07. The index traded between a session low of 52,721.62 and a high of 53,110.45, as investors rotated out of cyclical stocks amid concerns over slowing economic growth and fading hopes for near-term interest rate cuts.
The broader Standard and Pooir's 500 declined 45.08 points, or 0.58 percent, closing at 7,673.52. Volume on the index reached 2.891 billion shares, with losers outnumbering gainers by a wide margin. The benchmark traded within a range of 7,666.99 to 7,717.81 during the session, as weakness in financials and materials offset relative resilience in technology names.
The Nasdaq Composite proved the most resilient of the three major indices, though it still finished lower. The tech-heavy index shed 85.58 points, or 0.32 percent, to end at 26,421.41. It traded between an intraday low of 26,341.17 and a high of 26,542.14, with volume of 6.509 billion shares. Megacap technology stocks provided some support, limiting the downside as investors sought safety in names with strong balance sheets.
Market analysts attributed Tuesday's selloff to a combination of factors, including lingering inflationary concerns, profit-taking after recent record highs, and cautious positioning ahead of key economic data releases later in the week. The Dow's 1.18 percent drop marked its worst single-day performance in over a month, while the S&P 500's decline extended its losing streak to three sessions.
Trading volumes were elevated across all major exchanges, reflecting heightened investor activity as the month-end approaches. The Nasdaq's 6.509 billion shares traded underscored continued strong participation in technology names, even as the sector failed to escape the broader downward drift.
Forex Markets | Tuesday's Close: U.S. Dollar Softens as Most Majors Advance; Aussie Stalls
The U.S. dollar ended Tuesday on a weaker footing against most of its major peers, as traders weighed fresh hostilities in the Middle East, and position-adjusted ahead of key central bank meetings later this month. All currencies tracked gained ground on the greenback, with the sole exception of the Australian dollar, which finished flat.
The euro advanced against the dollar, with the EUR-USD pair settling at 1.1626, representing a gain of 0.03 percent. The modest uptick came despite lingering concerns over Eurozone economic momentum, as investors found support in expectations that the European Central Bank may hold rates steady for longer than previously anticipated.
The British pound also finished unchanged in percentage terms against the dollar, with GBP-USD settling at 1.3541, showing a change of zero percent. The flat performance came as traders digested mixed signals from the Bank of England regarding its next policy move, with inflation data due later in the week seen as the next major catalyst for sterling.
Against the Japanese yen, the dollar weakened as USD-JPY fell to 153.93, a decline of 0.28 percent. The move reflected further intervention by the Bank of Japan, and a modest flight to safety amid volatile equity markets, with the yen benefiting from its traditional safe-haven status as Asian bourses posted steep losses earlier in the session.
The Canadian dollar strengthened versus its U.S. counterpart, with USD-CAD dropping to 1.3785, a fall of 0.21 percent. The loonie was supported by firmer crude oil prices, given Canada's status as a major energy exporter, as well as broad-based dollar weakness.
The Australian dollar was the lone outlier, holding steady against the greenback. The AUD-USD pair closed at 0.7217, edging up just 0.01 percent—effectively flat on the day. The currency failed to join its peers in gaining ground on the dollar, as traders looked past domestic economic data and focused instead on slowing Chinese demand for Australian commodities and cautious Reserve Bank of Australia commentary.
Market participants now turn their attention to upcoming U.S. inflation figures and Federal Reserve communications, which are expected to provide clearer direction for the dollar in the near term. For now, however, the greenback's broad retreat on Tuesday underscored growing speculation that the Fed may be nearing the end of its tightening cycle, even as most of its global counterparts remain in a holding pattern.
Global Stock Markets Close Mixed as Tech Losses Offset European Gains; Nikkei Dives 1.70 Percent
Global stock markets delivered a fragmented performance on Tuesday, with Asian bourses suffering steep declines while European indices eked out modest gains, as investors digested a cocktail of corporate earnings, interest rate expectations, and economic data from major economies.
Japan's Nikkei 225 bore the brunt of the selling pressure, tumbling 1,130.52 points, or 1.70 percent, to close at 65,269.33. The sharp drop marked the worst performance among major global benchmarks, driven by a broad-based selloff in technology and export-oriented shares as the yen strengthened against the dollar.
Australia's S&P/ASX 200 fell 90.10 points, or 1.00 percent, to finish at 8,920.80, while the broader All Ordinaries Index declined 86.30 points, or 0.94 percent, to 9,114.30. The losses were led by mining and financial heavyweights, tracking weakness in commodity prices. ARN Media went against the trend, gaining 10 percent to 29.5 cents, its highest level since the Kyle Sanderson and Jackie O breakup earlier in the year. Across the Tasman, in New Zealand, the S&P/NZX 50 Gross Index dropped 149.93 points, or 1.08 percent, to 13,792.90.
Hong Kong's Hang Seng Index fell 95.94 points, or 0.38 percent, to 25,317.18, while in Singapore, the Straits Times Index declined 24.83 points, or 0.43 percent, to 5,767.45.
South Korea's KOSPI Composite Index lost 40.87 points, or 0.58 per cent, ending at 6,954.52, and in Taiwan, the TSEC Capitalisation Weighted Index dropped 220.49 points, or 0.47 per cent, to 47,105.78.
India's S&P BSE Sensex fell 555.23 points, or 0.73 percent, to 75,577.58, while in Malaysia, the FTSE Bursa KLCI slipped just 0.39 points, or 0.02 percent, to finish at 1,714.40.
European markets bucked the trend, closing mostly higher. The Euro STOXX 50 rose 9.18 points, or 0.14 percent, to 6,413.17, while in France, the CAC 40 added 11.83 points, or 0.14 percent, to 8,317.98.
The Euronext 100 Index gained 4.13 points, or 0.22 percent, to 1,921.17. Germany's DAX managed a fractional gain of 1.10 points, effectively flat at 26,007.63. In Belgium, the BEL 20 was a rare loser in Europe, slipping 4.90 points, or 0.08 percent, to 5,796.02.
London's FTSE 100 also ended in the red, declining 10.47 points, or 0.10 percent, to 10,811.66. The index traded between a low of 10,778.06 and a high of 10,850.73 during the session.
Canadian stocks suffered steep losses. The S&P/TSX Composite Index fell 390.75 points, or 1.07 percent, to close at 36,123.05. The index traded between 36,107.55 and 36,445.40 on volume of 293.497 million shares, with energy and mining shares leading the decline as commodity prices retreated.
Elsewhere, in Indonesia, the IDX Composite was a bright spot in Asia, rising 66.77 points, or 1.01 percent, to 6,686.44, while China's SSE Composite Index added 7.85 points, or 0.20 percent, to 3,940.55 on heavy volume of 1.46 billion shares.
In the Middle East, Israel's TA-125 index dropped 40.74 points, or 0.96 percent, to 4,189.31, while in Egypt, the EGX 30 Price Return Index shed 453.50 points, or 0.80 percent, closing at 56,174.30 on volume of 342.618 million shares.
In South Africa, the Top 40 USD Net TRI Index advanced 29.99 points, or 0.41 percent, to 7,397.20.
Market investors and traders attributed the divergent moves to ongoing concerns over Iran, renewed attacks by the Houthis on Saudi Arabian oil wells, elevated bond yields, and diverging central bank policies, with traders now looking ahead to key U.S. inflation data due later in the week for further direction.
(This report incorporates quotes retrieved with the assistance of artificial intelligence).
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