U.S. stocks sank again Wednesday as investors worried about tariffs and rising trade tensions. That hurt industrial companies, while banks slumped along with interest rates.
Stocks rose in the morning as investors looked for a rebound from the previous day's losses, but with European leaders warning about the risks of trade disputes, indexes gradually headed lower. Boeing and other industrial companies, including airlines and defense companies, took some of the worst losses.
Stocks have bounced around since President Donald Trump announced his tariff plans at the start of this month. They slumped at first, but came back after the administration said it would grant exemptions to some countries. They've slipped over the last two days as investors considered the possibility of greater trade tensions with Europe and China.
"Since the correction, investors have been a little bit more sensitive to risk," said Karyn Cavanaugh, senior market strategist at Voya Investment Strategies. "Before the correction, investors were almost bulletproof."
The S&P 500 index lost 0.6 percent, to 2,749.48. The Dow Jones industrial average lost 248.91 points, or 1 percent, to 24,758.12. The Dow is comprised of 30 large multinational companies, some of which will feel a pinch from higher metals costs or from retaliatory tariffs that may be placed on U.S.-made goods.
The Nasdaq composite fell 0.2 percent, to 7,496.81. The Russell 2000 index of smaller-company stocks declined 0.5 percent, to 1,584.31.