Investing.com – A sea of red washed over Wall Street for the second-straight day Tuesday, led by a sharp selloff in energy as oil prices plummeted.
The Dow Jones Industrial Average fell 2.21%. The S&P 500 fell 1.82%, while the Nasdaq Composite fell 1.70%.
Energy names fell sharply, leading a broad-based decline across Wall Street, pressured by plunging oil prices as fears of a supply glut took center stage even as OPEC is widely expected to announce output cuts in December.
The selloff on Wall Street was exacerbated by an ongoing rout in tech as investors continued to abandon their bullish bets on Apple.
Apple (NASDAQ:AAPL) fell 5%, deepening a selloff from a day earlier, after Goldman Sachs warned that weaker demand for Apple products and subdued demand for the iPhone XR outside the United States will keep a lid on the company’s stock.
Goldman Sachs slashed its price target on Apple to $182 from $209.
Among FAANG stocks, Facebook (NASDAQ:FB) and Alphabet (NASDAQ:GOOGL) closed modestly higher, while Amazon (NASDAQ:AMZN) and Netflix (NASDAQ:NFLX) closed in the red.
Elsewhere in tech, Nvidia (NASDAQ:NVDA) offered investors refuge from the selloff after short-seller Citron Research said it had snapped up the chipmaker’s shares and downplayed concerns about excess inventories.
Corporate earnings did little to lift sentiment on stocks following weak earnings from Target and Kohl’s.
Target (NYSE:TGT) slumped 10.5% and Kohl’s (NYSE:KSS) lost 9.2%,after both companies reported quarterly results that fell short of estimates, prompting investors to turn cautious on retailers ahead of the crucial holiday season.
On the economic front, a rebound in housing starts in October from a decline in the previous month drew a muted reaction as a subdued outlook on building permits data fuelled fears of a continued slowdown in U.S. housing activity.
In corporate news, Boeing (NYSE:BA) canceled a conference call with airlines to discuss the systems on the 737 MAX model, sending its shares more than 1% lower. A 737 MAX model was involved in a crash last month in Indonesia, killing all 189 people on board.
President Donald Trump, meanwhile, continued to pressure the Federal Reserve Tuesday, saying rates were “too high.”
“I think we have much more of a Fed problem than we have a problem with anyone else,” Trump told reporters outside the White House.
Top S&P 500 Gainers and Losers Today:
Agilent Technologies (NYSE:A), Campbell Soup (NYSE:CPB) and Analog Devices (NASDAQ:ADI) were among the top S&P 500 gainers for the session.
L Brands (NYSE:LB), Jacobs Engineering (NYSE:JEC) and Target (NYSE:TGT) were among the worst S&P 500 performers of the session.