Major equities benchmarks in New York tumbled to start the trading day on Tuesday, before rebounding to recoup most losses by close. The Dow Jones Industrial Average and S&P 500 both were down around 0.5% on the day.
Companies including 3M, down more than 3%, and Caterpillar, down more than 7%, suggested in earnings reports that they would be passing along to consumers increased costs due to tariffs.
The volatile day of trading in New York followed a renewed global selloff in the rest of the world, with the Shanghai Composite resuming its declines after a two-day rally, falling more than 2%. The Hang Seng Index in Hong Kong was down more than 3%, while the Nikkei 225 fell 2.65%.
In the course of Tuesday trading, the S&P 500 again fell below its 200-day moving average, but an afternoon rebound suggested the bottom is not quite ready to drop out.
As we wrote last week, despite the broader market’s resilience, most of the US stock market has been battered this year. If you take out the energy and tech sectors, the market has not performed well. While oil and gas will continue to benefit from higher prices, the tech sector is now beginning to look wobbly.