Following a sell-off in overseas markets, stocks have moved substantially lower in morning trading on Tuesday. The major averages have all slid firmly into negative territory after closing mixed for two consecutive sessions.
Currently, the major averages are just off their lows of the session. The Dow is down 462.35 points or 1.8 percent at 24,855.06, the Nasdaq is down 179.39 points or 2.4 percent at 7,289.24 and the S&P 500 is down 56.34 points or 2 percent at 2,699.54.
The sell-off on Wall Street reflects an extension of the weakness in overseas markets, while came amid worries about global economic growth and mounting geopolitical tensions.
A negative reaction to quarterly results from some big-name companies is also contributing to sharp decline by stocks.
Shares of Caterpillar (CAT) have plummeted by 9.9 percent even though the heavy equipment maker reported third quarter results that exceeded analyst estimates.
Investors seem disappointed Caterpillar reaffirmed its full-year earnings guidance rather than raising its forecast. The company’s comments about the impact of tariffs may also be weighing on the stock.
Diversified manufacturer 3M Co. (MMM) has also plunged by 6.9 percent after reporting weaker than expected third quarter results and cutting its full-year guidance.
On the other hand, shares of McDonald’s (MCD) have moved sharply higher after the fast food giant reported quarter earnings and revenues that beat expectations.
Energy stocks have helped to lead the way lower on the day, with a steep drop by the price of crude oil generating considerable selling pressure. Crude for December delivery is tumbled $1.79 to $67.57 a barrel.
Reflecting the weakness in the energy sector, the Philadelphia Oil Service Index is down by 4.6 percent, the NYSE Arca Oil Index is down by 3.9 percent and the NYSE Arca Natural Gas Index is down by 3.6 percent.
Computer hardware, steel, transportation, and chemical stocks are also seeing substantial weakness, reflecting a broad based sell-off on Wall Street.
In overseas trading, stock markets across the Asia-Pacific region moved sharply lower during trading on Tuesday. Japan’s Nikkei 225 Index tumbled by 2.7 percent, while Hong Kong’s Hang Seng Index plummeted by 3.1 percent.
The major European markets have also come under pressure on the day. While the German DAX Index has plunged by 2.5 percent, the French CAC 40 Index and the U.K.’s FTSE 100 Index are down by 1.9 percent and 1.6 percent, respectively.
In the bond market, treasuries have moved significantly higher amid the sell-off on Wall Street. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 7.6 basis points at 3.120 percent.
For comments and feedback contact: email@example.com