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The NASDAQ Composite hit a fresh record high on Tuesday, the first trading day this week, led by Amazon shares. But the broader market was down slightly amid concerns around U.S.-China trade relations and a virus outbreak in China.
The Dow Jones Industrials stayed in the red 15.64 points to 29,332.46
The S&P 500 was 1.21 points shy of breakeven at 3,328.41
The NASDAQ nosed ahead 1.63 points to 9,390.65.
Caterpillar and Chevron were among the worst-performing stocks in the Dow, pulling back more than 1% each. The S&P 500 was led lower by the materials and energy sectors.
In corporate news, Boeing is in talks with banks to borrow $10 billion amid the spiraling costs of two crashes involving its beleaguered 737 Max aircraft. Boeing shares fell 0.4%.
The corporate earnings season will also continue after the bell with Netflix, IBM, United Airlines and TD Ameritrade set to report quarterly figures. So far, the reporting period is off to a good start. More than 70% of the S&P 500 companies which have posted better-than-expected quarterly earnings.
The Dow was headed for its first decline in six sessions while the S&P 500 and NASDAQ were set to snap a three-day winning streak. U.S. markets were closed Monday due to the Martin Luther King Jr. holiday.
Concerns over a new strain of pneumonia in China also drove investors away from stocks. The outbreak of the new coronavirus in China has killed four people with confirmed cases exceeding 200 ahead of the Lunar New Year holiday, during which hundreds of millions of people are expected to travel.
Late on Monday, Chinese authorities confirmed that the virus is contagious.
Meanwhile, the International Monetary Fund (IMF) on Monday downgraded its global economic growth forecast from 3.4% to 3.3% for 2020. The U.S. economy is projected to grow by 2.0% this year, a downward revision of 0.1 percentage points compared with the IMF’s October 2019 forecast.
Prices for the 10-Year U.S. Treasury gained sharply, lowering yields to 1.78% from Friday’s 1.83%. Treasury prices and yields move in opposite directions.
Oil prices slid 25 cents to $58.29 U.S. a barrel.
Gold prices dipped $3.10 to $1,557.20 U.S. an ounce.
