Markets Right Now: Stocks open lower on Wall Street


The drop in U.S. stocks also came amid a signal from bond markets that has traditionally been a precursor to a recession. Add Stock Market as an interest to stay up to date on the latest Stock Market news, video, and analysis from ABC News.

The S&P 500 index lost 8 points, or 0.3 per cent, to 2,782.

The S&P 500 is down 60.11 points, or 2.2 percent. Benchmark U.S. crude gained 0.6 percent to settle at $53.25 per barrel in NY. Investor bullishness about the suspension of a trade war lifted stocks Monday, but were quickly undermined by conflicting U.S. Investors' confidence in that truce faltered Tuesday, contributing to renewed fears that the disagreement between the two economic powerhouses could slow the global economy. The Standard & Poor's 500 slid 3.2 percent to 2,700.06.

The Dow Jones Industrial Average decreased 799.36 points, or 3.10 percent, to 25,027.07. The tech-heavy NASDAQ ended the day 3.8 percent or 283 points lower at 7,158.

During the G-20 Summit, U.S. President Donald Trump and Chinese President Xi Jinping discussed ongoing trade tensions.

"People are still very concerned about the trade war", said Dan Suzuki, portfolio strategist at Richard Bernstein Advisors, according to CNN. US President Trump also added further doubt when he tweeted that if future negotiations don't go well, he'll become a 'Tariff man'. Tuesday's bearish market erased the 420 point rally on Monday after a major selloff.

Meanwhile, markets also got a bit of a jolt Tuesday from remarks by John Williams, president of the Fed's NY regional bank. "It will always be the best way to max out our economic power". That seemed to counter Fed Chairman Jay Powell's remarks last week.

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The jitters helped drive demand for government bonds Tuesday, pushing prices higher.

But late on Monday, the reverse happened: Five-year notes paid less than three-year notes, an indication that bond investors aren't too sure what the next few months will bring. The slide in bond yields, which affect interest rates on mortgages and other consumer loans, weighed on bank stocks.

"Today's move feels like the market is a scorned lover".

"It's fears about the inverted yield curve and what that means for the economy and is it a precursor to a recession", said Chuck Carlson, chief executive officer at Horizon Investment Services in Hammond, Indiana.

Big technology companies also suffered, including Apple, which fell 4.4 per cent, Amazon, down 5.9 per cent and Microsoft, which lost 3.2 per cent.

Frankfurt, London and Paris, which had taken their cue from strong rises in Hong Kong and Shanghai, saw early gains of around two percent slide to 1.8, 1.2 and 1.0 respectively by the close. Brent crude, the worldwide standard, added 0.9 percent to $62.22 per barrel in London. It gained 39 cents the previous session to $62.08.