Markets

Dow snaps 5-day winning streak, falls more than 280 points

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Stocks open lower, retreating from Monday's record

U.S. stock indexes fell Tuesday as July retail sales declined and concerns about slowing global economic growth intensified.

The Dow Jones Industrial Average fell 282.12 points, or 0.8%, to 35,343.28. The S&P 500 shed 0.7% to 4,448.08, and the Nasdaq Composite lost 0.9% to 14,656.18.

The Dow and the S&P 500 each snapped 5-day winning streaks. Tuesday's losses came after the two indexes closed at record highs in the prior session.

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Retail sales declined 1.1% in July, a steeper drop than the 0.3% dip expected by economists surveyed by Dow Jones and a reversal from June's 0.7% increase.

"When we're looking at the expectations for consumer strength going forward, some of the edge is being taken off by the rise in the delta variant," BMO Wealth Management's Yung-Yu Ma said. "These challenges aren't going to go away quickly."

Home Depot fell 4.2% after reporting second-quarter results, weighing on the Dow. While quarterly earnings topped estimates, same-store sales rose 4.5% in the period, below the 5% consensus estimate of analysts polled by StreetAccount. U.S. same store sales increased by just 3.4%.

Walmart shares were flat after second-quarter earnings topped estimates. The retailer gained ground in groceries and reported a strong start to the back-to-school season.

Disappointing economic data from China on Monday intensified concerns about a slowdown in global growth. Chip stocks tumbled for a second day on Tuesday with the iShares Semiconductor ETF down 1.9% and Nvidia nearly 2.5% lower. Shares of Tesla and Boeing, both also heavily reliant on China as a growth market, declined.

Meanwhile, technology names trended lower. Big Tech shares, including Google-parent Alphabet, Amazon, Apple and Facebook, closed in the red.

Elsewhere, health care shares saw strength with the S&P 500 Health Care Sector hitting a record at one point. UnitedHealth, Merck and Johnson & Johnson all moved higher.

On Monday, the S&P 500 reached a milestone as the benchmark index doubled from its pandemic closing low on March 23, 2020. That marks the fastest bull-market doubling since World War II, according to calculations from CNBC.

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