WASHINGTON (dpa-AFX) - After initially extending yesterday's rally in early trading, stocks moved mostly lower over the course of the session on Tuesday. The major averages all moved to the downside, partly offsetting Monday's strong gains.
The major averages all finished the day in negative territory. The Nasdaq slid 137.03 points or 0.7 percent to 20,916.55, the S&P 500 fell 30.75 points or 0.5 percent to 6,299.19 and the Dow edged down 61.90 points or 0.1 percent to 44,11.74.
The downturn on Wall Street may partly have reflected ongoing trade concerns following President Donald Trump's latest comments on tariffs.
In an interview on CNBC's 'Squawk Box,' Trump said he will be announcing new tariffs on semiconductors and chips as soon as next week, 'because we want them made in the United States.'
Trump also told CNBC planned tariffs on pharmaceuticals imported into the U.S. could eventually reach as high as 250 percent.
Negative sentiment may also have been generated in reaction to a report from the Institute for Supply Management unexpectedly showing a modest slowdown in the pace of growth by U.S. service sector activity in the month of July.
The ISM said its services PMI edged down to 50.1 in July from 50.8 in June. While a reading above 50 still indicates growth, economists had expected the index to rise to 51.5.
Early in the session, stocks benefitted from a positive reaction to some of the latest earnings news, including upbeat quarterly results from software company Palantir (PLTR).
Shares of Palantir surged by 7.9 percent after the company said its sales jumped almost 50 percent in the second quarter amid robust demand for artificial intelligence services.
Sector News
Despite the pullback by the broader markets, oil service stocks showed a substantial move to the upside on the day, resulting in a 3.5 percent surge by the Philadelphia Oil Service Index.
Gold stocks also saw significant strength amid a modest increase by the price of the precious metal, driving the NYSE Arca Gold Bugs Index up by 2.9 percent.
Housing and transportation stocks also saw notable strength on the day, while utilities and semiconductor stocks moved to the downside.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Tuesday. Japan's Nikkei 225 Index climbed by 0.6 percent, while China's Shanghai Composite Index advanced by 1.0 percent.
Meanwhile, the major European markets turned in a mixed performance on the day. While the French CAC 40 Index edged down by 0.1 percent, the U.K.'s FTSE 100 Index crept up by 0.2 percent and the German DAX Index rose by 0.4 percent.
In the bond market, treasuries showed a lack of direction over the course of the session before closing roughly flat. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, edged down by less than a basis point to 4.196 percent.
Looking Ahead
Amid a lack of major U.S. economic data, trading on Wednesday may be impacted by reaction to the latest corporate earnings news.
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