WASHINGTON (dpa-AFX) - Stocks moved notably lower during trading on Tuesday, giving back ground following the rebound seen in the previous session.
The Nasdaq slid 180.12 points or 0.9 percent to 19,521.09, the S&P 500 decreased 50.39 points or 0.8 percent to 5,982.72 and the Dow fell 299.29 points or 0.7 percent to 42,215.80.
The early pullback on Wall Street came as traders looked 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.'
Trump stepped up his attacks in a subsequent post calling for Iran's 'unconditional surrender,' leading to further downside for stocks.
The weakness on Wall Street also came 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 showed a significant move back to the downside after rebounding on Monday, dragging the NYSE Arca Airline Index down by 3.8 percent.
Considerable weakness was also visible among housing stocks, as reflected by the 2.5 percent slump by the Philadelphia Housing Sector Index.
Pharmaceutical, telecom and healthcare stocks also saw notable weakness, while energy stocks regained 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 all moved to the downside on the day. While the German DAX Index slumped by 1.1 percent, the French CAC 40 Index slid by 0.8 percent and the U.K.'s FTSE 100 Index decreased by 0.5 percent.
In the bond market, treasuries regained 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, tumbled by 6.5 basis points to 4.389 percent.
Looking Ahead
The Fed's monetary policy announcement is likely to be in focus on Wednesday, while reports on housing starts and weekly jobless claims may also attract attention.
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