Stocks fell on Tuesday as investors struggled to maintain momentum during a busy stretch of corporate earnings. The Dow Jones Industrial Average fell by 166 points or 0.5%, the S&P 500 slipped by 0.6%, and the Nasdaq Composite dropped by 0.4%. The market moves on Tuesday came after a solid start to the week, with all the major averages coming off of back-to-back gains. On Monday, the Nasdaq Composite led with a gain of 2.01%, and the S&P 500 and Dow added 1.19% and 0.76%, respectively. However, these gains have come despite an underwhelming start to earnings season and more signs that the U.S. economy is slowing, with some expecting the recent rally to lose steam.
The market was also affected by a technical issue that briefly halted shares of many companies listed on the New York Stock Exchange, including Nike, McDonald’s, and Morgan Stanley. This technical issue further added to the uncertainty in the market.
Many analysts predict that the market will struggle to maintain its current level of growth due to continued pressure on corporate profit growth. Mark Haefele, chief investment officer at UBS Global Wealth Management, wrote in a note to clients, “We do not see much scope for markets to rally in the near term, especially given our outlook for continued pressure on corporate profit growth.”
Earnings season continued on Tuesday with results from 3M and Verizon, which fell on disappointing guidance. Software giant Microsoft reported after the bell. As stocks struggled, the dollar gained, mimicking a trend that has taken off in recent weeks.