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US Indexes Close Lower Tuesday With New China Trade Tensions

The Dow Jones Industrial Average closed at 26,164.04 on Tuesday with a loss of 313.98 points or -1.19%. The S&P 500 closed at 2,893.06 for a loss of 45.73 points or -1.56%. The Nasdaq Composite closed at 7,823.78 for a loss of 132.52 points or -1.67%. The VIX Volatility Index was higher at 20.28 for a gain of 2.42 points or 13.55%.

Tuesday's market movers

U.S. indexes closed lower for a second day Tuesday with developments in the tech sector and China trade negotiations weighing on investors' outlooks. The U.S. announced it would blacklist 28 more Chinese tech companies with the new round of names focused on violations against Uighur Muslims from companies that develop facial recognition and artificial intelligence. The U.S. also said it would initiate new visa restrictions for Chinese officials involved in Uighur Muslim abuse. News from China following the reports said that China's Vice Premier Liu He would no longer be joining trade talks this week and that Chinese officials would be leaving one day ahead of previous plans.

Also in the tech sector, the number of attorney generals collaborating on investigations into Facebook (NASDAQ:FB) expanded from approximately seven to 40, with the efforts led by New York Attorney General Letitia James. Facebook was down 1.07% on Tuesday and the Nasdaq 100 fell 1.56%.

Helping stock trading to bounce off of intraday lows, Chairman Jerome Powell commented that the U.S. expansion could steadily continue and reported that the Federal Reserve was making plans to add additional reserves to its balance sheet in an effort to help ease issues with overnight bank lending.

Economic reports affecting market trading included the following:

  • The NFIB Business Optimism Index decreased to 101.8 in September from 103.1.
  • The Producer Price Index decreased 0.3% in September following an increase of 0.1%. Year over year, the Producer Price Index had a gain of 1.4% down from 1.8%.
  • The Core Producer Price Index, excluding food and energy, was down 0.3% in September following an increase of 0.3%. Year over year, the Core Producer Price Index was up 2% following an increase of 2.3%.
  • The Treasury held auctions for 52-week bills at a rate of 1.600% and three-year notes at a rate of 1.413%.
  • The Fed's Evans, Kashkari and Powell gave speeches.

In the S&P 500, the financial, health care and technology sectors led losses. In the Dow Jones Industrial Average, the following stocks led losses:

  • Dow Inc. (NYSE:DOW) -2.92%
  • Cisco (NASDAQ:CSCO) -2.89%
  • JPMorgan (NYSE:JPM) -2.23%
  • IBM (NYSE:IBM) -2.05

Small-cap stocks

In small caps, the Russell 2000 closed at 1,472.60 for a loss of 25.19 points or -1.68%. The S&P 600 closed at 912.64 for a loss of 16.07 points or -1.73%. The Dow Jones U.S. Small-Cap Growth Index closed at 9,373.33 for a loss of 177.20 points or -1.86%. The Dow Jones U.S. Small-Cap Value Index closed at 9,042.38 for a loss of 150.45 points or -1.64%.

Other notable indexes

Other notable index closes included the S&P 400 Mid-Cap Index at 1,860.86 for a loss of 33.19 points or -1.75%; the S&P 100 at 1,282.82 for a loss of 19.11 points or -1.47%; the Nasdaq 100 at 7,604.27 for a loss of 120.86 points or -1.56%; the Russell 3000 at 1,693.28 for a loss of 27.56 points or -1.60%; the Russell 1000 at 1,598.13 for a loss of 25.92 points or -1.60%; the Wilshire 5000 at 29,553.93 for a loss of 468.27 points or -1.56%; and the Dow Jones U.S. Select Dividend Index at 702.83 for a loss of 11.58 points or -1.62%.

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This article first appeared on GuruFocus.