U.S. stocks swing lower in volatile trading on Tuesday.
The U.S. stock market swung sharply lower on Tuesday, as negative headlines from around the world dampened investors’ appetite for riskier assets.
All of Wall Street’s major indices finished in negative territory. The Dow Jones Industrial Average (NYSEARCA:DIA) fell 142.22 points, or 0.5%, to 26,807.77.
The large-cap S&P 500 Index (NYSEARCA:SPY) plunged 0.8% to close at 2,966.60. Nine of 11 primary sectors recorded losses, led by communication services. Consumer discretionary and energy stocks also under-performed their benchmark. On the opposite side of the ledger, utilities rose more than 1%.
Meanwhile, the technology-focused Nasdaq Composite Index (NYSEARCA:QQQ) plunged 1.5% to settle at 7,993.63.
A measure of implied volatility known as the CBOE VIX (NYSEARCA:VXX) rose sharply on Tuesday, reaching its highest level in three weeks. VIX climbed 14.8% to 17.11 on a scale of 1-100 where 20 represents the historic average.
President Trump took shots at China, Iran and social media companies during his United Nations address on Tuesday. The president singled out China for its “grave economic injustice” and called on the country to change its practices.
“Not only has China declined to adopt promised reforms, it has embraced an economic model dependent on massive market barriers, heavy state subsidies, currency manipulation, product dumping, forced technology transfers and the theft of intellectual property and also trade secrets on a grand scale,” he said.
The Bottom Line: U.S. stocks continue to hover near record highs. If the United States and China are able to resolve their trade dispute in the near future, investors can expect stocks to continue higher.