U.S. stock indexes closed broadly lower on Tuesday as sectoral weakness in Utilities, Industrials and Consumer Goods outweighed gains in several individual large-cap names.
At the New York Stock Exchange close, the Dow Jones Industrial Average slipped 0.59%. The S&P 500 dropped 0.63% and the Nasdaq Composite finished the day down 0.59%.
Notable performers on the Dow
- UnitedHealth Group (UNH) led gains on the Dow, rising 6.96% or 22.53 points to end at 346.01.
- Cisco Systems (CSCO) added 2.31% or 2.03 points to close at 89.74.
- Chevron (CVX) was up 1.50% or 2.74 points to finish at 185.99.
Dow laggards
- Merck & Co. (MRK) fell 3.87% or 4.53 points to 112.57 at the close.
- Honeywell International (HON) dropped 3.25% or 7.47 points to 222.27.
- Sherwin-Williams (SHW) declined 2.72% or 9.35 points to 334.59.
S&P 500 movers
- Northern Trust (NTRS) led S&P 500 gains, up 8.04% to 171.77.
- HP Inc. (HPQ) rose 7.66% to settle at 21.09.
- UnitedHealth (UNH) also featured among the S&P's top performers, gaining 6.96% to close at 346.01.
S&P 500 decliners
- Tractor Supply (TSCO) was the biggest loser on the S&P 500 roster, down 11.69% to 39.57.
- FMC Corporation (FMC) dropped 8.53% to 15.87.
- Northrop Grumman (NOC) fell 6.98% to close at 611.13.
Large percentage swings on the Nasdaq
- Faraday Future Intelligent Electric (FFAI) jumped 85.52% to 0.53.
- Electro-Sensors (ELSE) surged 74.60% to settle at 7.63.
- Republic Power Group (RPGL) gained 58.47% to close at 0.72.
Heaviest drops on the Nasdaq
- Hub Cyber Security (HUBC) tumbled 54.41% to 2.53.
- Linkage Global (LGCB) lost 31.12% to finish at 0.79.
- Sow Good (SOWG) declined 30.30% to 0.17.
On the New York Stock Exchange, declining issues outnumbered advancing ones by 1,969 to 781, with 69 stocks unchanged. On the Nasdaq, 2,375 stocks fell and 1,007 advanced, while 160 ended unchanged.
Several companies registered milestone moves during the session. Northern Trust reached an all-time high, climbing 8.04% or 12.78 to 171.77. Tractor Supply fell to a 52-week low after losing 11.69% or 5.24 to 39.57. Cisco Systems also rose to an all-time high, gaining 2.31% or 2.03 to 89.74. On the downside, Hub Cyber Security, Linkage Global and Sow Good each touched all-time lows, with Hub Cyber Security losing 54.41% or 3.02 to 2.53, Linkage Global down 31.12% or 0.36 to 0.79, and Sow Good falling 30.30% or 0.07 to 0.17. Electro-Sensors climbed to a five-year high, jumping 74.60% or 3.26 to 7.63.
Volatility, commodities and currencies
The CBOE Volatility Index, which measures implied volatility for S&P 500 options, rose 3.29% to 19.49.
In commodities trading, June gold futures fell 2.14% or 103.36 to $4,725.44 a troy ounce. U.S. crude oil for June delivery increased 2.87% or 2.51 to $89.93 a barrel, while the June Brent contract rose 3.51% or 3.35 to $98.83 a barrel.
In foreign exchange, the euro-dollar rate was largely unchanged, with EUR/USD moving 0.33% to 1.17. The dollar strengthened versus the yen, as USD/JPY rose 0.36% to 159.34. The US Dollar Index Futures was up 0.26% at 98.16.
Summary
Markets closed lower with sector pressure centered on Utilities, Industrials and Consumer Goods. Large-cap winners like UnitedHealth, Cisco and Chevron provided offsetting gains, while sharp moves among small-cap and micro-cap names produced outsized percentage winners and losers. Volatility ticked up and commodity prices diverged, with oil higher and gold lower.
Key points
- Broad market retreat - Major U.S. indexes closed lower: Dow -0.59%, S&P 500 -0.63%, Nasdaq -0.59%.
- Sector and stock divergence - Utilities, Industrials and Consumer Goods led losses, while select large-cap stocks including UNH, CSCO and CVX posted gains.
- Volatility and commodity moves - The CBOE Volatility Index rose to 19.49; crude oil advanced, gold declined.
Risks and uncertainties
- Elevated volatility - The rise in the CBOE Volatility Index indicates higher option-implied uncertainty that can affect risk-sensitive sectors and equities.
- Commodity price swings - Divergent moves in oil and gold may influence energy and materials sector earnings and investor sentiment.
- Concentration of moves among small-cap names - Large percentage gains and losses in micro-cap listings highlight heightened idiosyncratic risk for smaller equities.