The three major U.S. indexes ended the session in the negative, with the S&P 500 and the Dow dropping from Monday’s record closing highs
U.S. stocks closed down on Tuesday, following world stocks lower as a weak sales forecast from chipmaker ASML weighed on tech shares, while crude extended its decline due to easing supply concerns and weakening demand.
The three major U.S. indexes ended the session in the negative, with the S&P 500 and the Dow dropping from Monday’s record closing highs.
Financial firms Goldman Sachs, Citigroup and Bank of America all posted better-than-expected profit, while healthcare companies UnitedHealth and Johnson & Johnson results underwhelmed investors.
But Netherlands-based chip equipment maker ASML posted third quarter results that surprised markets with weak bookings and lower-than-expected sales forecasts, news that proved contagious to the U.S. chip sector.
The U.S. stock market is so heavily weighted in tech, it is going to drive where the overall market appears to be going, according to Rob Haworth, senior investment strategist at U.S. Bank Wealth Management.
But below the surface it is not bad news across the board, he said.
The global story is more due to soft data, Haworth said.
Energy stocks suffered the sharpest percentage decline among the major S&P 500 sectors, dropping 3.04% on sliding crude prices.
The Dow Jones Industrial Average slipped 324.60 points, or 0.75%, to 42,740.62, the S&P 500 tumbled 44.54 points, or 0.76%, to 5,815.31 and the Nasdaq Composite skidded 187.10 points, or 1.01%, to 18,315.59.
European stocks posted their biggest one-day percentage decline in more than two weeks, weighed by tech stocks in the wake of ASML’s disappointing annual sales forecast.
Meanwhile, investors remained focused on the ECB’s rate decision on Thursday.
MSCI’s gauge of stocks across the globe stumbled 6.20 points, or 0.72%, to 850.98. The STOXX 600 index skidded 0.8%, while Europe’s broad FTSEurofirst 300 index tumbled 19.22 points, or 0.92%.