(Image by Oleg Gamulinskiy from Pixabay)
(CNBC) -- Stocks slumped on Tuesday as investors weighed increased tensions between the U.S. and China with House Speaker Nancy Pelosi’s Taiwan visit and reacted to comments from Federal Reserve Presidents about the central bank’s path forward.
The S&P 500 slipped 0.66% to 4,091.35 after being down nearly 1% earlier in the session. The benchmark had earlier climbed off of lows as Pelosi’s plane landed safely in Taiwan Tuesday morning. The Dow Jones Industrial Average also shed 401.64 points, or 0.90%, to 32,396.76, weighed down by Caterpillar, which shed more than 3% after reporting disappointing quarterly earnings. The Nasdaq Composite fell 0.16% to12,348.76, even though Uber jumped 18.9% following earnings.
Stocks wavered early in the afternoon, reacting to multiple comments from regional Fed Presidents who all threw cold water on the idea that the Fed will be done raising rates, or move them lower anytime soon.
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