US stocks closed in the red on Tuesday, although losses were pared a bit as players fretted over the unsettled state of the US-China trade war.
The Dow Jones Industrial index was off by 0.5% to close at 25,191.
The S&P 500 lost 0.55% to finish at 2,740.
The Nasdaq fell 0.42% to settle at 7,437.
The Russell 2000 of small-cap stocks declined 0.68% to conclude at 1,529.
In Canada, the TSX was down 115 points or by 0.75% to trade around 15,296, weighed by global market volatility and a drop in energy stocks.
12:32 PM: Dow plunges by more than 300 points as quarterly results from Caterpillar and 3M disappoint
The major US benchmarks were in negative territory this afternoon, contending with trade war concerns and continued sell-offs in tech.
The Dow Jones Industrial Average was down more than 385 points, weighed down by disappointing earnings from industrial bellwethers Caterpillar (NYSE:CAT) and 3M (NYSE:MMM).
The S&P 500 was down more than 40 points by midday. Truck manufacturer Paccar Inc and healthcare company Centene Corporation (NYSE:CNC) were top decliners on the index despite better-than-expected quarterly earnings.
The Nasdaq fell more than 110 points in afternoon trading. Chipmakers Micron Technology Inc (NASDAQ:MU) and Nvidia Corp (NASDAQ:NVDA) were two of the worst-performing stocks on the tech-heavy index.
The Russell 2000 fell about 1.6% this afternoon with Selecta Biosciences Inc (NASDAQ:SELB) leading the way. The biotech recently halted a cancer drug trial after the death of a patient with a second patient developing a dangerous buildup of fluid around the heart.
Up north, the TSX was down more than 260 points as global market downturn mixes with a drop in energy stocks.
10:00 AM: Dow plunges by more than 300 points as quarterly results from Caterpillar and 3M disappoint
US stocks tumbled at the open on Tuesday as investors digested disappointing results from Caterpillar (NYSE:CAT) and 3M (NYSE:MMM) and concerns persisted over trade battles and Italy’s budget problems.
Shortly after the opening bell, shares of 3M and Caterpillar, two industrial bellwethers, plunged 5.7% and 8.2% respectively.
The sell-off in Caterpillar came after the machinery exporter reported that tariffs were driving up the cost of its materials and chose not to lift its yearly earnings forecast. 3M shares meanwhile took a hit after its third-quarter results fell short of expectations and it slashed its profit forecast for the year.
A sharp sell-off in China shares, which saw the Shanghai Composite Index drop around 60 points to 2,594, also pushed concerns about trade tensions to the fore while Italy’s impasse with the European Union about its budget plans similarly cast a pall over markets.
Early in the session, the Dow Jones Industrial Average index shed 341 points to hit 24,976, dragged back by Caterpillar, 3M, Microsoft Corp, Visa, DowDuPont and Chevron.
The tech-laden Nasdaq also plunged, losing 135 points to hit 7,335, dragged back by Paccar Inc, Seagate Technology, the chip makers Nvidia Corp and ASML Holding NV as well as Wynn Resorts.
Elsewhere, the S&P 500 shed 36 points to 2,720 while the Russell 2000 index of small-cap stocks fell by 22 points to 1,517.
Up in Canada, the market rout continued with Toronto’s TSX plummeting by 225 points to hit 15,187, dragged back by a slump in the performance of energy stocks.
7:06 AM: Dow Jones Industrial Average poised to plunge 280 points as global investors take flight
Wall Street shares are seen lower at the open as global equities track lower as investors flee from risk.
Investors are fretting over geopolitical matters as they await another round of corporate US earnings.
Germany stops exporting arms to Saudi Arabia after killing of Jamal Khashoggi https://t.co/csHXS7wrec
— TIME (@TIME) 23 October 2018
Lockheed Martin (NYSE:LMT), McDonald's (NYSE: MCD), Verizon (NYSE: VZ) and Xerox (NASDAQ: XRX) are some big names set to report before the bell.
Dean Popplewell, an analyst at Forex group Oanda, said: "Global stocks have swung sharply lower overnight, amid growing fears about the health of the Chinese economy and a slew of geopolitical concerns – U.K, Italy and Saudi Arabia."
He added: "In the U.S, President Trump indicated late Monday he wanted more information about the death of Jamal Khashoggi before the U.S proposed an official reaction."
Yesterday (Monday), US stocks having started on the front foot on the back of China’s stock market surging ahead, ended the day mostly lower.
The Dow Jones Industrial Average fell almost 127 points at 25,317, while the S&P 500 shed almost 12 at 2,755. The tech heavy Nasdaq exchnange added over 19 points at 7,468.
In futures trade, the Dow Jones has plunged 289 points; the Nasdaq lost 107 points and the S&P 500 shed almost 36 points.
In Europe, benchmark indices are lower, with FTSE 100 off 42 points and the German DAX 187 lower.
In Asia overnight, stocks went sharply lower, with the Nikkei 225 diving over 604 points and the Shanghai Composite Index down around 60 points at 2,594.
Dow Jones Industrial Average poised to plunge 280 points as global investors take flight
China on Monday announced new measures to ease the funding worries of private companies, while Japanese markets were hit with lackluster earnings and a waning of sentiment.