- Markets Insider
US stocks slid in mid-morning trading on Tuesday, with the financials sector on the S&P 500 down by more than 2%.
Bank of America was the worst performer on the index, down nearly 5%.
All the three major indexes opened higher in New York, with the Nasdaq Composite hitting yet another record high, lifted by Apple.
But at 1:52 p.m. ET, the Dow was down 208 points, or 1%. The S&P 500 was down 25 points, or 1.07%; it has closed down by more than 1% since October 11.
The Nasdaq was down 88 points (-1.50%.)
Global investors have been worried about increasing protectionism, following the Brexit vote and President Donald Trump’s election. Last week, the G20 leaders dropped a pledge to keep global trade free and open.
Investors will keep an eye on speeches by several Federal Reserve officials for clues on the path of future interest rate hikes after the central bank last week raised rates for the first time this year.
The Fed stuck to its outlook for two more hikes this year, instead of the three expected by the market.
Bank of Kansas City President Esther George and Cleveland Fed chief Loretta Mester are scheduled to speak later in the day, while Boston Fed head Eric Rosengren will release the text of his speech.
“Investors continue to expect two more rate hikes this year, although the odds have slipped slightly since last week,” said Craig Erlam, senior market analyst at online forex broker Oanda in London.
“That said, I still expect the Federal Reserve tightening cycle to be much more aggressive than other central banks over the next couple of years.”
Earlier, Apple rose 0.66 percent to an all-time high of $142.40 after the company unveiled a new version of its iPad tablet.
Shares of General Mills slipped 0.2 percent to $60.13 after the Cheerios maker’s quarterly sales missed expectations.
Esperion Therapeutics jumped 15.1 percent to $47.48 after J.P. Morgan raised its price target on the stock.
FedEx and Dow-component Nike, which are due to report quarterly results after markets close, both edged up about 0.6 percent.