FX.co ★ US Stocks Tumble

U.S. stocks experienced a downturn on Tuesday, with the S&P 500 declining by 1%, the Nasdaq decreasing by 1.4%, and the Dow Jones dropping 370 points. This downturn was primarily driven by substantial losses in the technology and consumer discretionary sectors. Initial optimism regarding improved U.S.–China trade relations waned as both nations began implementing new port fees on each other's goods, raising fears of potential further conflict. Additionally, China enacted sanctions against five U.S. subsidiaries of South Korea's Hanwha Ocean. As the earnings season began, JPMorgan reported a 2.4% decrease after revealing provisions for credit losses slightly above expectations at $3.4 billion. Goldman Sachs saw a 3.7% decline despite exceeding revenue forecasts, while Johnson & Johnson fell 0.7% following better-than-anticipated results and an announcement to divest its orthopedics unit. Conversely, Citigroup remained relatively unchanged after a profit increase, BlackRock surged 1.7% following its earnings and revenue successes, and Wells Fargo rose 4% thanks to a profit rise.