Falling Rates Weigh on Markets
Stocks fell on Tuesday as a decline in interest rates during the U.S.-China trade war sparked worries about a possible slowdown in the economy.
The Dow Jones Industrials tumbled 237.85 points to 25,347.84, surrendering a 131-point gain earlier in the day.
The S&P 500 lost 23.67 points to 2,802.39, as the consumer staples and utilities sectors lagged.
The NASDAQ Composite faded 29.66 points to 7,607.35
Bank shares fell broadly amid the lower interest rates. Goldman Sachs dropped 1.7% while Citigroup fell 0.6%, and J.P. Morgan Chase sagged 0.8%. Morgan Stanley and Wells Fargo also slipped.
Chip makers moved south, led by a 3% decline in Micron Technology. Intel dipped 2.4%, and Qorvo also skidded 2.3%. Caterpillar, another bellwether for trade, slipped nearly 1%.
In corporate news, Fiat Chrysler shares rose more than 7% on news it is seeking a merger with French automaker Renault. Meanwhile, Total Systems Services rose more than 4% after agreeing to merge with Global Payments.
Consumer confidence data also boosted sentiment. The Conference Board said consumer confidence rose this month to its higher level since November.
Still, worries over U.S.-China trade talks prevented the broader market from posting sharp gains. President Donald Trump said Monday the U.S. was "not ready" to make a deal with China, before adding he expected one in the future. Trump also said tariffs on Chinese imports could go up "substantially."
Trump's comments come after a commentary piece in Chinese state-run newspaper Xinhua hinted China would not bend to U.S. demands change its state-run economy. The U.S. has raised concern over state-run companies and the forced surrender of intellectual property.
Prices for the benchmark 10-year U.S. Treasury rose sharply, lowering yields to 2.26% from Friday's 2.32%. Treasury prices and yields move in opposite directions.
Oil prices took on 25 cents to $58.88 U.S. a barrel.
Gold prices sagged $4.90 to $1,278.70 U.S. an ounce.