The stock market experienced a mixed day on Tuesday, with the Dow Jones Industrial Average sliding more than 100 points and the S&P 500 snapping a six-day winning streak. The Dow fell 114.83 points, or 0.27%, to close at 42,677.24. The S&P 500 dropped 0.39% to 5,940.46, and the Nasdaq Composite declined 0.38% to 19,142.71.
Investors sold off tech stocks, which had been leading the rally over the past six days. The tech sector fell 0.5%. The overall market declines added to what has been a rapid and sharp rebound for stocks over the past five weeks, with the S&P 500 rallying more than 20% since hitting an April low.
Bill Northey, investment director at U.S. Bank Wealth Management, told a source, “I would say the largest consideration is that we’ve had the swoon related to the introduction of tariffs, the furious rally associated with the de-escalation of those tariff implementations, and now we’re awaiting clarification as many of these negotiations are ongoing.” Northey added that investors are stuck in a state of “optimism without clarity.”
Tesla shares rose after CEO Elon Musk voiced his commitment to leading the electric vehicle maker for the next five years during Bloomberg’s Qatar Economic Forum in Doha. The electric vehicle stock posted a 0.5% gain for the day.
Dow slides over investor trade concerns
President Donald Trump urged key House Republicans to drop their opposition to a major tax bill over a cap on deductions for state and local taxes. This opposition threatens to derail the tax legislation, which Trump hoped to see passed before the upcoming Memorial Day weekend. In other news, shares of eyewear brand Warby Parker surged more than 14% on Tuesday after the company announced a partnership with Google to develop artificial intelligence-powered glasses.
The companies plan to launch a series of intelligent eyewear products incorporating multimodal AI with prescription and non-prescription lenses after 2025. Solar stocks climbed after President Trump announced the construction of a New York offshore wind farm, reversing an earlier order to stop the project. This project would be the first offshore wind project to bring electricity directly to New York City.
Germany’s DAX index touched an all-time high on Tuesday, while Spain’s IBEX rose to its highest level since early 2008, and Greek stocks hit their highest point since 2010. The Euro STOXX 600 Banks index climbed to its highest since late 2008 after the European Union and the United Kingdom reached an agreement.
