U.S. stocks drift lower ahead of Independence Day.
U.S. stocks headed lower on Tuesday in a holiday-shortened session marked by tepid trading volumes.
The large-cap S&P 500 Index (NYSEARCA:SPY) declined 0.5% to close at 2,713.22. Five of 11 primary sectors finished in negative territory, with information technology shares falling 1.4%. Financials declined 1.1% and consumer discretionary stocks finished 0.6% lower.
Dow industrials (NYSEARCA:DIA) closed down 132.36 points, or 0.5%, to 23,174.82. Most Dow 30 components ended in negative territory.
Meanwhile, the technology-driven Nasdaq Composite Index (NYSEARCA:QQQ) fell 0.9% to close at 7,402.67.
A measure of implied volatility known as the CBOE VIX (NYSEARCA:VXX) reversed earlier losses to finish higher on Tuesday. Wall Street’s preferred measure of investor anxiety added 3.5% to close at 16.14 on a scale of 1-100 where 20 represents the historic average.
In commodities, oil prices overcame a rocky session to finish on a higher. U.S. West Texas Intermediate (WTI) futures gained 25 cents, or 0.3%, to $74.19 a barrel on the New York Mercantile Exchange. ICE Brent futures rose 36 cents, or 0.5%, to $77.66 a barrel.
Morgan Stanley has upped its oil-price forecast to $85 a barrel as the Trump administration seeks new sanctions against Iran in the fallout of the 2015 nuclear accord.
In economic data, U.S. factory orders rose unexpectedly in May, a sign that the world’s largest economy was improving on multiple fronts. The Department of Commerce reported a 0.4% uptick in factory bookings for the month, compared with forecasts calling for no change.
The Final Word: U.S. stock markets are closed on Wednesday for Independence Day. Normal market hours will resume the following morning.