The Dow Jones Industrials swooned 402.23 points or 1.2%, to end Tuesday at 32,396.17, weighed down by Caterpillar, which shed more than 3% after reporting disappointing quarterly earnings.
The S&P 500 surrendered 27.44 points from earlier gains to 4,091.19. The benchmark had earlier climbed off of lows as Pelosi’s plane landed safely in Taiwan Tuesday morning.
The NASDAQ Composite lost 20.22 points to 12,348.76.
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.
Pelosi is expected to spend the night in Taiwan, Reuters reported. Leading up to the trip, Chinese officials threatened to act if Pelosi moved forward with the visit. Pelosi is the most senior U.S. official to meet with Taiwan leaders on the island since former House Speaker Newt Gingrich visited in 1997.
Traders are also looking ahead to another raft of earnings from companies such as Starbucks, PayPal and Advanced Micro Devices on Tuesday after the bell.
On the economic data front, investors this week are awaiting the July non-farm payrolls report slated for release Friday for further clues into the state of the economy and the job market.
Treasury prices fell Tuesday, raising yields to 2.75%, from Monday’s 2.60%. Treasury prices and yields move in opposite directions.
Oil prices gathered 21 cents to $94.10 U.S. a barrel.
Gold prices jettisoned $10.40 to $1,777.30 U.S. an ounce.