U.S. stocks sold off across the board on Tuesday with the Dow Jones Industrial Average falling over 600 points, before trimming those declines. Losses accelerated in the final hour of trading as all major S&P 500 sectors tumbled led by energy, industrials, financials and tech. The volatility, in what is a short trading week due to Thanksgiving, erased yearly gains for the Dow, S&P 500 and essentially the Nasdaq Composite.
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|I:DJI||DOW JONES AVERAGES||27942.73||-93.49||-0.33%|
|I:COMP||NASDAQ COMPOSITE INDEX||8582.133503||+32.20||+0.38%|
Commodities took a hit with oil falling about 7 percent, the biggest drop in more than three years, now hovering at the $53 per barrel level. In a statement President Trump indicated the U.S. will continue its working relationship with Saudi Arabia and later told reporters oil prices were in "great shape."
After the United States, Saudi Arabia is the largest oil producing nation in the world. They have worked closely with us and have been very responsive to my requests to keeping oil prices at reasonable levels – so important for the world.
As for big tech, shares of Apple are officially sitting in a bear market, down 20 percent from October's record levels, as investors worry about some weakness in iPhone sales. This pressured the broader tech sector as Microsoft and Twitter also joined the retreat, while Amazon swung between losses and gains during the session.
Additionally, disappointing same-store sales weighed on shares of retailers, including Kohl's, Lowe's, TJX Companies, Ross Stores and Best Buy. Shares of Target plunged more than 10 percent after its third-quarter earnings and same-store sales missed estimates. Sales at Target stores open at least a year rose 5.1 percent, short of analysts' estimates of a 5.21 percent increase, according to IBES data from Refinitiv. Investors eyed this sector ahead of the key holiday shopping season.
|BBBY||BED BATH & BEYOND INC.||12.95||-1.01||-7.24%|
|LOW||LOWE'S COMPANIES INC.||113.04||-1.98||-1.72%|
|ROST||ROSS STORES INC.||112.61||+0.42||+0.37%|
And bitcoin also tumbling. to the lowest level in more than a year.
Economic news was mixed: Housing starts in October fell for the second straight month, but building permits rose from the previous month and beat analyst expectations.
The selling was underway globally as well.
Japan's Nikkei fell to a three-week low on Tuesday as a drop in Nasdaq shares dragged down Japanese tech names, while Nissan Motor tumbled on news of Chairman Carlos Ghosn's arrest and dismissal.
The Nikkei average ended 1.1 percent lower. China’s Shanghai Composite retreated 1 percent. Hong Kong’s Hang Seng dropped 2 percent.
In Europe, London’s FTSE traded down 0.1 percent, Germany’s DAX traded 0.7 percent lower and France’s CAC fell 0.7 percent.
On Monday, U.S. stocks spiraled lower with U.S. tech companies, including Facebook and Apple, pacing the declines. The Nasdaq Composite fell 3 percent or 219.40 points. While the Dow Jones Industrial Average lost over 395.78 points or 1.5 percent, trimming what was a 500 point midday loss. While the broader S&P 500 lost 45.54 points or 1.6 percent.
On the economic front, investors got spooked after U.S. homebuilder sentiment hit the lowest level in two years, according to the National Association of Home Builders. The association said its index of builder confidence dropped 8 points to 60, missing analyst expectations for the key metric.
FOX Business' Ken Martin contributed to this report.