WASHINGTON (dpa-AFX) - Stocks have moved mostly lower during trading on Tuesday, extending the pullback seen over the course of the previous session. The major averages have climbed off their worst levels after an early slump but remain in the red.
The major averages have moved roughly sideways in recent trading, stuck firmly in negative territory. The Nasdaq is down 112.82 points or 0.6 percent at 17,731.42, the Dow is down 182.71 points or 0.4 percent at 41,036.12 and the S&P 500 is down 23.18 points or 0.4 percent at 5,627.20.
Ongoing trade uncertainty continues to weigh on the markets following recent strength, which saw the S&P 500 close higher for nine straight sessions before yesterday's pullback.
While Treasury Secretary Scott Bessent told CNBC on Monday the U.S. is 'very close to some deals,' the lack of any concrete developments from trade talks has kept investors on edge.
President Donald Trump is scheduled to meet with Canadian Prime Minister Mark Carney for the first time later today amid a tense relationship between the historic allies due to disputes over trade and Canada's sovereignty.
In trade-related economic news, the Commerce Department released a report this morning showing the U.S. trade deficit spiked by much more than expected in the month of March.
The report said the trade deficit soared to a record high $140.5 billion in March from a revised $123.2 billion in February.
Economists had expected the trade deficit to widen to $129.0 billion from the $122.7 billion originally reported for the previous month.
The much bigger than expected trade deficit came as the value of imports surged by 4.4 percent to $419.0 billion, while the value of exports crept up by 0.2 percent to $278.5 billion.
The weakness on Wall Street also comes as traders look ahead to the Federal Reserve's latest monetary policy announcement Wednesday afternoon.
CME Group's FedWatch Tool is currently indicating a 96.8 percent chance the Fed will leave interest rates unchanged, but traders will look to the accompanying statement for clues about the outlook for rates.
Sector News
Biotechnology stocks have shown a significant move to the downside on the day, with the NYSE Arca Biotechnology Index tumbling by 2.3 percent after ending the previous session at its best closing level in a month.
Vertex Pharmaceuticals (VRTX) has helped lead the sector lower, plunging by 11.3 percent after reporting weaker than expected first quarter results.
Considerable weakness is also visible among pharmaceutical stocks, as reflected by the 2.0 percent slump by the NYSE Arca Pharmaceutical Index.
Transportation, healthcare and semiconductor stocks are also seeing notable weakness, while gold stocks are extending yesterday's rally amid a continued surge by the price of the precious metal.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region turned in another mixed performance on Tuesday, with markets in Japan and South Korea closed for holidays. China's Shanghai Composite Index jumped by 1.1 percent, while India's Nifty 50 Index fell by 0.3 percent.
Meanwhile, European stocks have moved mostly lower on the day. While the U.K.'s FTSE 100 Index is nearly unchanged, the French CAC 40 Index and the German DAX Index are both down by 0.5 percent.
In the bond market, treasuries are showing a lack of direction ahead of the Fed's monetary policy announcement on Wednesday. Currently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by less than a basis point at 4.347 percent.
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