Dow Jones Industrial Average drops 280 points
The Dow slid 280.23 points, or 1.01%, to end the day at 27,502.81. The S&P 500 dropped 0.66% to close at 3,093.20. The Nasdaq Composite fell 0.55% to 8,520.64. President Donald Trump’s latest comments on the U.S.-China trade war sent stocks tumbling.
Trump: We may want to wait on a trade deal
Trump suggested on Tuesday he may want to hold off on a U.S.-China trade deal until after next year’s presidential election. That comment sparked Tuesday’s sell-off, which built on the previous session’s sell-off. Trump downplayed Tuesday’s slump, calling it “peanuts.” However, those remarks — coupled with more negative trade rhetoric from Commerce Secretary Wilbur Ross — have investors on edge after increased expectations that some kind of deal would get signed this month. Failure to do so at this point could make for another turbulent December on Wall Street.
Caterpillar, semiconductors slide
Trade-related stocks dragged the broader market lower on Tuesday. Caterpillar shares slid 2.03% while Boeing and Apple dropped 0.87% and 1.78%, respectively. Chipmakers also dropped. The VanEck Vectors Semiconductor ETF (SMH) closed about 1.40% lower. Nvidia fell 0.76% lower while Micron Technology pulled back 2.5%.
What happens next?
Private payrolls data will be front and center for investors on Wednesday alongside a reading on the U.S. services sector. Trump is also scheduled to have a bilateral meeting with Chancellor Angela Merkel.