NEW YORK — US stocks closed sharply lower Tuesday as investors digested a positive start to earnings season, a eurozone deal to help support Spain and its banks, and disappointing Chinese trade data.
A slump in confidence registered by a US small-business survey and warnings on the corporate front “became the ‘anxiety du jour,'” Charles Schwab & Co. analysts said.
The Dow Jones Industrial Average dropped 83.17 points (0.65 percent), closing at 12,653.12.
The S&P 500 fell 10.99 points (0.81 percent) to 1,341.47, while the tech-rich Nasdaq skidded 29.44 (1.00 percent) to 2,902.33.
The National Federation of Independent Business said its small-business optimism index fell in June to its lowest reading since last October.
“Political uncertainty remains historically high and continues to be a primary cause for a reticence among small-business owners to expand,” the NFIB said.
“After slow but steady improvement over the first half of this year, small business optimism soured considerably in June,” said Leslie Levesque at IHS Global Insight.
Alcoa dived 4.1 percent, the steepest decliner on the 30-stock Dow. The aluminum giant unofficially kicked off earnings season after the markets closed Monday, reporting results in line with expectations.
Dow member Caterpillar shed 3.5 percent, while Intel fell 2.3 percent. The chipmaker announced it would pump about $4.1 billion into Dutch company ASML Holding. US-traded ASML shares jumped 8.5 percent.
Kraft Foods was the biggest blue-chip gainer, up almost 1.0 percent.
On the Nasdaq, Advanced Micro Devices plunged 11.2 percent after the microprocessor maker lowered its second-quarter revenue forecast.
The US indices fell more modestly Monday as the slow economy and worries about European stability and Chinese growth dragged down sentiment.
The bond market firmed. The yield on the 10-year Treasury slipped to 1.50 percent from 1.51 percent Monday, while the 30-year fell to 2.59 percent from 2.62 percent.
Bond prices and yields move in opposite directions.
Republicans in Congress are angry about Trump’s latest racist comments — but not because they’re racist
There can be no denying that amid the firestorm from President Donald Trump tweeting that Reps. Alexandria Ocasio-Cortez (D-NY), Rashida Tlaib (D-MI), Ilhan Omar (D-MN), and Ayanna Pressley (D-MA) should "go back where they came from," Republicans in Congress are upset.
However, as many of them make clear in conversation with reporters, the fact that these comments were racist is not the main reason they are angry at the president. Rather, they are frustrated that his comments are hogging the news cycle, which leaves them incapable of discussing their agenda — and of criticizing the agenda of the Democratic representatives he targeted.
Lara Trump says the president is the real victim: He ‘gave up his entire life’ to be president
Campaign advisor Lara Trump defended her father-in-law saying that he's the real victim in this exchange between four Congresswomen of color. Then she repeated that these women can "leave" the country.
Trump began the fight Sunday when he told four Congresswomen that if they didn't like what was happening in the United States Why don’t they go back and help fix the totally broken and crime infested places from which they came." The women are all citizens and all but one was born in the United States.
"The reality is everything he says, of course, was taken and misconstrued," she said, alleging Trump's statements were taken out of context. You can read them below:
George Conway declares ‘Trump is a racist president’ in brutal Washington Post column
Prominent Republican attorney George Conway blasted President Donald Trump in an op-ed published by The Washington Post on Monday evening.
Conway explained how he avoided thinking of Trump as a racist, despite the president's actions.
"No, I thought, President Trump was boorish, dim-witted, inarticulate, incoherent, narcissistic and insensitive. He’s a pathetic bully but an equal-opportunity bully — in his uniquely crass and crude manner, he’ll attack anyone he thinks is critical of him. No matter how much I found him ultimately unfit, I gave still him the benefit of the doubt about being a racist. No matter how much I came to dislike him, I didn’t want to think that the president of the United States is a racial bigot," he explained.