WASHINGTON (dpa-AFX) - After moving to the upside early in the session, stocks have come under considerable pressure over the course of the trading day on Tuesday. The major averages have pulled back well off their highs of the session and firmly into negative territory.
The tech-heavy Nasdaq is underperforming the other major averages and is currently down 561.90 points or 2.2 percent at 25,367.76. The S&P 500 is also down 95.64 points or 1.3 percent at 7,310.09, while the Dow is down 285.73 points or 0.6 percent at 50,500.28.
The sharp pullback on Wall Street comes amid renewed weakness among tech stocks, which had regained some ground on Monday following last Friday's sell-off.
Semiconductor stocks have helped lead the sector lower, with the Philadelphia Semiconductor Index plunging by 5.7 percent after spiking by 5.6 percent in the previous session.
Computer hardware, networking and software stocks have also moved significantly lower, contributing to the slump by the Nasdaq.
Outside the tech sector, energy stocks are also seeing considerable weakness amid a steep drop by the price of crude oil.
With crude oil futures plunging by nearly 5 percent, the Philadelphia Oil Service Index is down by 3.2 percent and the NYSE Arca Oil Index is down by 3.1 percent.
U.S. crude oil futures have slumped below $90 a barrel after President Donald Trump claimed the U.S. and Iran could reach a peace deal within 'two or three days.'
Trump also told reporters the Strait of Hormuz would open 'immediately' after an agreement is reached, although his previous claims that a deal is close have not come to fruition.
Meanwhile, housing stocks have shown a substantial move to the upside, driving the Philadelphia Housing Sector Index up by 2.8 percent.
The strength in the sector comes after the National Association of Realtors released a report showing existing home sales in the U.S. spiked by much more than anticipated in the month of May.
NAR said existing home sales surged by 3.2 percent to an annual rate of 4.17 million in May after climbing by 0.8 percent to an upwardly revised rate of 4.04 million in April.
Economists had expected existing home sales to jump by 1.5 percent to an annual rate of 4.08 million from the 4.02 million originally reported for the previous month.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Tuesday. China's Shanghai Composite Index jumped by 1.3 percent, Japan's Nikkei 225 Index surged by 2.2 percent and South Korea's Kospi spiked by 8.2 percent.
Most European stocks have also moved to the downside on the day. The U.K.'s FTSE 100 Index is down by 1.4 percent and the German DAX Index is down by 0.8 percent, although the French CAC 40 Index is up by 0.1 percent.
In the bond market, treasuries have pulled back near the unchanged line after seeing early strength. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by less than a basis point at 4.546 percent.
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