Advertisment
U.S. equities dropped on Tuesday, even as oil prices pulled back, as a surge in chip stocks lost momentum after a one-day rally.
The Dow Jones Industrials stumbled 403.03 points to 50,382.
The S&P 500 parted with 130.82 points, or 1.8%, to 7,275.07.
The tech-heavy NASDAQ stumbled 764.67 points, or 3%, to 25,167.39.
Micron Technology dropped more than 6% after Monday’s 10% comeback. The shares tumbled about 20% in two days last week, including a 13% rout on Friday. Broadcom, which had an equally steep two-day drop last week, fell almost 5% as Monday’s rebound fizzled.
West Texas Intermediate crude futures shed 5% to trade under $90 a barrel at around $86 after U.S. Energy Secretary Chris Wright said that Strait of Hormuz ship traffic is “rising very meaningfully.”
The move also comes after President Donald Trump said that a deal between the U.S. and Iran could be reached in “two or three days” that reopens the Strait of Hormuz “immediately.”
Prices for the 10-year Treasury moved upward, lowering yields to 4.52% from Monday’s 4.57%. Treasury prices and yields move in opposite directions.
Oil prices lost $5.27 to $86.03 U.S. a barrel.
Gold prices tumbled $73.30 to $4,290.10 U.S. an ounce.
