Again a wobbly day for wall street as stocks capped with board losses on Tuesday instead of initially advanced in the morning trade. Safe-haven demand and fear of global economic slowdown along with topsy turvy trade talks pushed the market again in the red zone and fell for the third time in four days.
losses in oil & gas, consumer goods, and financial sector led the shares lower. All the three US major indices reversed their early gain and treasury extended their rally with the yield on the US 10-year down 6.8 basis points to 1.4761%.
The blue-chip index benchmark Dow Jones Industrial Averages fell 0.47% included several reversals among shares of communication, technologies and other sectors. The S&P 500, which had been up on the previous session, reversed those gains and end the day by 0.3% lower. Among the 11 sectors, defensive sectors such as utilities and real estate sectors were the biggest gainer surged 0.1%, while energy and financials were the largest decliners for the day. Those two sectors fell the most among the S&P 500 industry sectors. The Banking shares led losses as bond prices surged, which pulled United States 10-Year yield fell below 1.50 % which means lower profits for banks because they pull down interest rates on mortgage and other loans. Apparently, Health care stocks and several big retailers also finished the day with lower among them Humana and Gap both slid 5.8%, and 4.9% respectively. A number of pharmaceutical stocks fell after Oklahoma judge's decision on Monday to order Johnson & Johnson to pay $572 million for its involvement in the opioid crisis. On the other hand, Small caps in the Russell 2000 and the tech-heavy index Nasdaq both were down 0.7% and 0.6% respectively. Shares in Philip Morris International continuing their downturn and slid 7.8% along with their merger partner Altria Group which also slid 4%. The downturns came after the maker of Marlboro cigarettes confirmed that it is in merger talks with Altria Group. J.M. Smucker Co also added the pain and fell 9.2% after their second-quarter results which missed the expectations.
In commodities markets, the price of crude oil rose 2.5% to about $54.96 per barrel, while gold prices added 0.9% to about $1551 per ounce.