Stocks fall hard on Tuesday, with Dow Jones snapping seven-day winning streak.
U.S. stocks declined sharply on Tuesday, with the Dow Jones Industrial Average (NYSEARCA:DIA) falling nearly 200 points in a broad-based retreat for Wall Street.
The blue-chip index declined 193.00 points, or 0.8%, to close at 24,706.41. Twenty-six of 30 index members recorded losses.
The broader S&P 500 Index (NYSEARCA:SPY) fell 0.7% to 2,711.45, with ten of 11 sectors finishing in the red.
Meanwhile, the technology-heavy NASDAQ Composite Index (NYSEARCA:QQQ) fell 0.8% to close at 7,351.63.
A measure of implied volatility known as the CBOE VIX (NYSEARCA:VXX) surged on Tuesday as complacency exited the market. The so-called “fear index” jumped more than 13% to 14.63 after spending the better part of a weeks at more than three-month lows.
The U.S. dollar strengthened to more than five-month highs on Tuesday, as investors raised their outlook for Federal Reserve rate hikes in the latter half of 2018. The U.S. dollar index (DXY), which tracks the performance of the greenback against a basket of six currencies, jumped 0.7% to 93.21.
In economic data, U.S. retail sales climbed in April for a second consecutive month, underscoring a healthy domestic economy. Receipts at retail stores rose 0.3% from a month earlier, matching forecasts, according to the Commerce Department.
The Final Word: Rate-hike jitters on Tuesday were enough to spoil Wall Street’s prolonged recovery. This theme could play out indefinitely in the second half of the year as the Federal Reserve targets higher interest rates.