Wall Street Close: US stocks ended sharply lower, trade tensions weighing

• Dow Jones Industrial Average has fallen 457.21 points, or 1.89%, to close at 23764.78.
• The S&P 500 index dropped 60.20 points, or 2.05%, to end at 2870.12.
• The Nasdaq Composite index fell 189.79 points, or 2.06%, to finish at 9002.55.

US benchmarks were ending far lower on Tuesday as investors weighed the combination of efforts to reopen the US economy, monitoring other nations and increases in COVID-19 case as well as the rising trade war tensions. Consequently, the DJIA was marking its biggest one-day percentage drop since May 1st.

New clusters of COVID-19 cases have emerged in countries that have begun to lift restrictions. In Wuhan, where the outbreak began, six people tested positive over the weekend. This was the first time we have seen new cases in more than a month from the Hubei province reporting zero infections. Also, about a week after Chancellor Angela Merkel further relaxed Germany's strict lockdown, the nation has reported nearly three times as many new COVID-19 cases as it did the day before.

• US COVID-19 cases total 1,342,594 cases vs 1,324,488 in previous report

Meanwhile, United States President Donald Trump remains opposed to renegotiating the US-China "Phase One" trade deal after the Global Times reported some government advisers in Beijing were urging fresh talks and possibly invalidating the agreement. Additionally, Bloomberg News reported Republican senators were moving towards a vote to sanction Chinese officials over Beijing’s mistreatment of Uighur minorities in Xinjiang. The Trump administration was also ordering the Federal Retirement Thrift Board to halt its investments in Chinese stocks.

As for performances, the Dow Jones Industrial Average has fallen 457.21 points, or 1.89%, to close at 23764.78. This was the benchmarks biggest one-day percentage drop since May 1. The S&P 500 index dropped 60.20 points, or 2.05%, to end at 2870.12. The Nasdaq Composite index fell 189.79 points, or 2.06%, to finish at 9002.55, snapping its six-day win streak.

US data sinking to record levels

As for US data, consumer prices for April fell at its fastest pace since the Great Depression. "The headline CPI fell 0.8% MoM, in line with expectations, but core CPI undershot falling 0.4% MoM vs expectations of a 0.2% drop. The data highlight the scale of the deflationary shock to hit the economy and this will be a major focus for the Fed going forward. Major falls were recorded in car insurance (-7.2%) and airline fares (-15.2%)," analysts at ANZ Bank explained. 

DJIA levels