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The Dow Jones Industrial Average fell for the first time in four sessions on Tuesday, paring some of the strong gains from the previous session as recession fears lingered.
The 30-stock index staggered 173.35 points to 25,962.44
The S&P 500 lost 23.14 points to 2,900.51
The NASDAQ plunged 54.25 points to 7,948.56
Still, the Dow has recovered a large chunk of its 800-point drop from Wednesday while the S&P 500 and NASDAQ have also regained some of their losses from that day.
Home Depot helped keep losses in check. Shares of the home improvement retailer rose 4.4% on better-than-expected earnings. However, Home Depot warned tariffs could hit consumer spending and cut its full-year revenue outlook.
Chip stocks contributed to Tuesday’s decline. Micron Technology ditched 1.7%, and Advanced Micro Devices slid 2.4%. Netflix shares pulled back 3.4%.
Bank shares such as Citigroup, Bank of America and J.P. Morgan Chase all traded lower as Treasury yields pulled back.
Equities rose sharply on Monday as a rebound in bond yields continued, easing ongoing recession fears. The White House has also stepped in the ongoing debate over whether the U.S. economy will soon enter into recession mode, highlighting the strength in the U.S. economy.
Various media sources both reported the Trump administration was discussing a cut to payroll taxes as a way to mitigate slower economic growth. A White House official pushed back on the reports, saying cutting payroll taxes "is not something under consideration at this time."
Traders also looked ahead to the release of the Federal Reserve’s minutes from its July meeting. The central bank cut rates by 25 basis points last month, citing "global developments" and "muted inflation." The Fed minutes are scheduled for release Wednesday at 2 p.m. ET.
Prices for the benchmark 10-year U.S. Treasury regained lost ground, lowering yields to 1.55% from Monday’s 1.61%. Treasury prices and yields move in opposite directions
Oil prices gave up three cents to $56.18 U.S. a barrel.
Gold prices brightened $5.90 to $1,517.50 U.S. an ounce.
