WASHINGTON (dpa-AFX) - Following the substantial rebound seen in the previous session, stocks have moved back to the downside during trading on Tuesday. The major averages have all moved lower, although selling pressure appears somewhat subdued.
Currently, the major averages are off their lows of the session but still in negative territory. The Nasdaq is down 49.81 points or 0.3 percent at 19,651.40, the S&P 500 is down 16.22 points or 0.3 percent at 6,016.89 and the Dow is down 63.94 points or 0.2 percent at 42,451.15.
The pullback on Wall Street comes as traders look to cash in on yesterday's strong gains amid renewed concerns about the ongoing clash between Israel and Iran.
While reports hinting at an end to hostilities contributed to a rally on Monday, news that President Donald Trump left a G7 summit early to focus on the conflict has led to worries about further escalation.
In a post on Truth Social, Trump said French President Emmanuel Macron mistakenly said he left the summit in order to work on a cease fire between Israel and Iran.
'He has no idea why I am now on my way to Washington, but it certainly has nothing to do with a Cease Fire,' Trump said. 'Much bigger than that.'
The weakness on Wall Street also comes following the release of a Commerce Department report showing U.S. retail sales fell by more than expected in the month of May.
The Commerce Department said retail sales slid by 0.9 percent in May after edging down by a revised 0.1 percent in April.
Economists had expected retail sales to decline by 0.6 percent compared to the 0.1 percent uptick originally reported for the previous month.
Excluding a steep drop in sales by motor vehicle and parts dealers, retail sales fell by 0.3 percent in May after coming in unchanged in April. Ex-auto sales were expected to inch up by 0.1 percent.
Sector News
Airline stocks have shown a significant move back to the downside after rebounding on Monday, dragging the NYSE Arca Airline Index down by 1.8 percent.
Considerable weakness is also visible among pharmaceutical stocks, as reflected by the 1.4 percent loss being posted by the NYSE Arca Pharmaceutical Index.
Telecom and housing stocks are also seeing notable weakness, while energy stocks are regaining ground along with the price of crude oil.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Tuesday. Japan's Nikkei 225 Index increased by 0.6 percent, while Hong Kong's Hang Seng Index fell by 0.3 percent.
Meanwhile, the major European markets have all moved to the downside on the day. While the German DAX Index is down by 1 percent, the French CAC 40 Index is down by 0.7 percent and the U.K.'s FTSE 100 Index is down by 0.5 percent.
In the bond market, treasuries are regaining ground following the pullback seen over the two previous sessions. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 3.5 basis points at 4.419 percent.
Copyright(c) 2025 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2025 AFX News
