Investing.com – Stocks fell for a second-straight day as worries about the U.S.-China trade talks, set to begin this week, proved strong enough to stall a recovery bid.
The S&P 500 finished down 1.56% just after hitting its low on the day. The Dow Jones industrials, which had fallen as many as 338 points early in the day, finished down 1.2%, or 314 points. The Nasdaq Composite fell 1.67%.
Chip and biotech stocks were among the hardest-hit groups. The Philadelphia Semiconductor Index slumped more than 3% because so much of chipmakers' business has been tied to growth in sales growth in China. Nasdaq Biotechnology Index fell about 2% because of a weak earnings report from Qiagen NV (NYSE:QGEN).
Banks dropped more than 2%.
The decline left the S&P and Dow more than 4% off from their summer peaks. The Nasdaq is off nearly 6%.
China was the big weight on the market, starting with last night's announcement that the Trump Administration won't let eight Chinese companies and a number of police departments buy technology products that can be used in surveillance.
Tuesday afternoon, the U.S. said it will impose visa bans on Chinese communist party officials linked to abuse in China's Xinjiang province, where some million ethnic Uighurs have been put in detention camps.
The China news offset a positive reaction to Federal Reserve Chairman Jerome Powell's announcement the central bank will be buying securities to provide enough liquidity in the banking system.
Oil and gold prices were lower. Interest rates moved up.