Markets

Here's what happened to the stock market on Tuesday

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Traders work on the floor of the New York Stock Exchange (NYSE) in New York.
Brendan McDermid | Reuters

Dow Jones Industrial Average falls 152 points

The Dow slid 152.06 points, or 0.52%, to 29,196.04. The S&P 500 pulled back 0.27% to 3,320.79. The Nasdaq Composite dropped 0.19% to end the day at 9,370.81. Stocks slipped from record levels as worries about the coronavirus in China and U.S. trade relations dented sentiment.

Coronavirus fears spook investors

The CDC confirmed the first U.S. case of coronavirus, a sickness that has been spreading around China and has already killed a few people. The fast-spreading nature of the virus reminded traders of the economic fallout from the SARS crisis in 2003. Comments from Treasury Secretary Steven Mnuchin and President Donald Trump on trade also pushed stocks down. Mnuchin said a phase-two trade deal with China may not remove all U.S. tariffs already implemented. Meanwhile, Trump said he is "absolutely serious" about imposing tariffs on European cars if a trade deal with the region cannot be struck. Bottom line, traders were looking for a reason to take some profits off the table, and they got a few on Tuesday. But investors remain optimistic about the market moving forward.

Boeing shares drop

Shares of the airplane manufacturer dropped 3.33% after CNBC reported the company doesn't expect regulators to sign off on the beleaguered 737 Max until mid-2020.

What happens next?

Home sales data will be released Wednesday while Johnson & Johnson reports earnings. Read more here.

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