Stocks fell on Tuesday as a rally in mega-cap tech shares lost steam and concerns about the coronavirus outbreak dampened investor sentiment.
The Dow Jones Industrials dropped 396.85 points, or 1.5%, to end Tuesday at 25,890.18.
The S&P 500 fell 34.4 points, or 1.1%, to 3,145.32.
The tech-heavy NASDAQ let go of 89.76 points to 10,343.89.
Both the NASDAQ and S&P 500 snapped five-day winning streaks. The Dow posted its first decline in three sessions.
Shares of Amazon fell 1.9% to lead tech lower. Netflix closed 0.1% lower after hitting a record earlier in the day. Microsoft, Apple and Facebook ended the session off their highs.
Stocks tied to the economy reopening from the coronavirus shutdowns were lower. Norwegian Cruise Line and Carnival Corp were lower by more than 5% each. American Airlines slipped 7%, and United Airlines 7.6%.
Positive news on the coronavirus front gave the market a boost earlier on Tuesday. The U.S. government awarded drugmaker Novavax a $1.6-billion contract to develop a coronavirus vaccine, the biggest amount yet granted under the White House’s “Operation Warp Speed.” Novavax shares were up 37%.
More than 2.93 million coronavirus cases have been confirmed in the U.S. along with at least 130,306 deaths, according to Johns Hopkins University. Over the weekend, more than 20 states reported a hospitalization growth rate of at least 5%.
Atlanta Federal Reserve President Raphael Bostic also told The Financial Times the U.S. economic recovery will be “bumpier” as coronavirus cases continue to rise.
The U.S. Labor Department released Tuesday its latest report on U.S. job openings, which showed them growing to 5.4 million in May. The government’s Job Openings and Labor Turnover Survey is a month behind the more closely followed non-farm payrolls report, which showed a surge of 4.8 million in June and a 2.7 million jump in May.
Prices for the 10-Year Treasury gained ground, dropping yields to 0.64% from Monday’s 0.67%. Treasury prices and yields move in opposite directions.
Oil prices docked 29 cents to $40.34 U.S. a barrel.
Gold prices added $15.70 to $1,809.20 U.S. an ounce.