Lingering trade-war risks trigger sharp declines for stocks.
U.S. stocks fell sharply on Tuesday, with the Dow Jones Industrial Average (NYSEARCA:DIA) shedding more than 200 points as trade risks kept equity investors at bay.
Dow industrials plunged 287.26 points, or 1.2%, to 24,700.21.
The broader S&P 500 Index (NYSEARCA:SPY) fell 0.4% to close at 2,752.57. Six of 11 primary sectors finished in the red.
Meanwhile, the technology-heavy Nasdaq Composite Index (NYSEARCA:QQQ) closed down 0.3% at 7,725.58.
A measure of implied volatility known as the CBOE VIX (NYSEARCA:VXX) rose sharply on Tuesday. The so-called “fear index” jumped more than 8% to 13.32 on a scale of 1-100 where 20 represents the historic average.
The Trump administration on Friday announced it will be taxing up to $50 billion in Chinese imports. On Tuesday, President Trump asked his administration to identify an additional $200 billion worth of Chinese goods to be included in a fresh round of tariffs. Beijing has threatened retaliation to the proposed tariffs.
In commodities, oil prices tumbled on Tuesday ahead of a planned summit of the Organization of the Petroleum Exporting Countries (OPEC) later this week. The cartel is widely expected to announce an increase in crude production of up to 600,000 barrels per day.