Stocks fall as investors gear up for earnings season.
U.S. stocks declined sharply on Tuesday, as investors shifted their attention to corporate earnings and kept a close eye on China trade talks.
All of Wall Street’s major indices finished in negative territory. The Dow Jones Industrial Average (NYSEARCA:DIA) fell 190.44 points, or 0.7%, to 26,150.58.
The broad S&P 500 Index (NYSEARCA:SPY) declined 0.6% to close at 2,878.26. Most of the 11 primary sectors tracked by the S&P 500 finished lower, with financials, industrials and energy stocks falling at least 1%.
The technology-focused Nasdaq Composite Index (NYSEARCA:QQQ) closed down 0.6% at 7,909.28.
A measure of implied volatility known as the CBOE VIX (NYSEARCA:VXX) rose for a second consecutive day and briefly traded as high as 14.35. The so-called “fear index” settled at 14.10, having gained 7%. VIX normally trades inversely with the S&P 500 Index.
In commodities, oil prices rose to multi-week highs after the People’s Bank of China expanded its bullion reserves for a fourth consecutive month. The PBOC purchased 360,000 ounces of gold in March, bringing its total reserves up to 60.62 million. Since November, the world’s second-largest economy has added 1.38 million ounces to its holdings.
Gold for June settlement climbed $6.30, or 0.5%, to $1,308.20 a troy ounce on the Comex division of the New York Mercantile Exchange. Bullion has spent the better part of 2019 trading above $1,300.
The U.S. dollar index (DXY), which often trades inversely with precious metals, was little changed at 97.02.
The Final Word: Attention shifts to corporate earnings this week, with the likes of JPMorgan Chase and Wells Fargo scheduled to report on Friday. S&P 500 companies are expected to post for their first year-over-year earnings drop since 2016, with energy, materials and information technology stocks experiencing the biggest losses.