Stocks finish lower on Tuesday, as Nasdaq snaps winning streak.
U.S. stocks finished in negative territory on Tuesday after President Donald Trump ousted Rex Tillerson from his post as Secretary of State and promoted CIA Director Mike Pompeo.
The large-cap S&P 500 Index (NYSEARCA:SPY) declined 0.6% to 2,765.31. Most sectors finished in the red, with information technology and financials posting the biggest drops.
Weak tech shares dragged the Nasdaq Composite Index (NYSEARCA:QQQ) from record levels. The tech-heavy average declined 1% to close at 7,511.01.
The Dow Jones Industrial Average (NYSEARCA:DIA) declined 171.58 points, or 0.7%, to 25,007.03.
A measure of 30-day volatility known as the CBOE VIX (NYSEARCA:VXX) rose 3.6% to 16.34, its second consecutive advance.
President Trump’s decision to fire Tillerson on Tuesday caught the markets by surprise, signaling to investors that the administration was struggling to see eye-to-eye on a number of issues. Trump lauded Pompeo for his proven track record of working with both Republicans and Democrats.
In economic data, U.S. inflation strengthened as expected in February, boosting confidence in the Federal Reserve’s ability to raise interest rates later this month.
The consumer price index (CPI) rose 2.2% annually in February, compared with 2.1% the previous month, the Department of Labor reported Tuesday.
So-called core inflation rose 1.8% year-over-year, official data showed.
The Final Word: Though faced with ongoing turmoil, the Trump administration is making significant progress on a number of fronts. This includes organizing a high-stakes negotiation with North Korea.