Sliding technology shares weigh down Wall Street on Tuesday.
The U.S. stock market traded mixed on Tuesday, with shares of information technology and consumer staples companies weighing down the benchmark indices.
The large-cap S&P 500 Index (NYSEARCA:SPY) drifted between gains and losses before eventually settling flat at 2,979.38. Five of 11 primary sectors finished lower, with information technology and consumer staples among the hardest hit.
On the opposite side of the ledger, energy, industrials and materials rose.
The Dow Jones Industrial Average (NYSEARCA:DIA) rallied 73.92 points, or 0.3%, to close at 26,909.43. The blue-chip index was up more than 100 points earlier in the session.
Meanwhile, the technology-focused Nasdaq Composite Index (NYSEARCA:QQQ) settled flat at 8,084.16.
A measure of 30-day volatility known as the CBOE VIX (NYSEARCA:VXX) rose for a second consecutive session on Tuesday. The so-called “investor fear index” edged up 1% to 15.42 on a scale of 1-100 where 20-25 represents the historic average. VIX traded as high as 16.52.
On the data front, all eyes were on a pair of Chinese inflation releases that continued to show a sharp divergence between consumer prices and factory-gate inflation.
China’s annual consumer price index (CPI) rose 2.8% in August, matching the highest since February 2018, the National Bureau of Statistics reported. Producer prices, which are used to gauge corporate profitability, plunged 0.8% on a year-over-year basis. Deflation at the factory gate level suggests the U.S.-led trade war is beginning to harm Chinese producers.
The Final Word: The U.S.-China trade war is far from over. As it currently stands, Donald Trump will likely make tariffs a campaign issue leading up to the 2020 president election.