Investing.com -- U.S. stocks pared early losses on Tuesday but still closed broadly lower, as soft manufacturing data in China and a surprise rate cut from the Australian central bank weighed on global equities, offsetting gains from a rally in Apple shares.
In overnight trading, the Caixin Media Co. reported that China's factory activity in April fell by 0.3 to 49.4, marking the 14th straight month that its manufacturing index has remained in contraction territory. It came days after data from China's National Bureau of Statistics reported similar weakness in the factory sector after its official manufacturing PMI fell by 0.1 on the month to 50.1. Investors also reacted to a 25 basis point cut by the Reserve Bank of Australia (RBA) on Tuesday to 1.75%, the lowest on record. The latest easing measure from a top central bank intensified concerns from investors that a global economic slowdown could be on the verge of resurfacing.
The Dow Jones Industrial Average lost 140.25 or 0.78% to 17,750.91, while the S&P 500 Composite index dropped 18.06 or 0.87% to 2,063.37, erasing all of the gains from the opening session of the month. The NASDAQ Composite index, meanwhile, fell 54.37 or 1.13% to 4,763.22, as semiconductor stocks weighed. On the S&P 500, all 10 sectors closed in the red as stocks in the Basic Materials and Energy sectors lagged. In total, four sectors dropped by at least 1% on the day.
The top performer on the Dow was Pfizer Inc (NYSE:PFE), which gained 0.94 or 2.87% to 33.74, after the pharmaceutical giant saw its global sales surge 20% over the first quarter to $1.3 billion. Pfizer (NYSE:PFE) also credited strong performances among its Rheumatoid arthritis and cancer drug therapies and its recent acquisition of hospital products company Hospira (NYSE:HSP) for topping earnings estimates. The worst performer was United Technologies Corporation (NYSE:UTX), which fell 2.24 or 2.15% to 102.13. Earlier on Tuesday, workers at the company's aerospace parts segment approved a labor agreement that will bolster wages by 2.5% annually over the next five years. While laborers from the International Association of Machinists will receive a 12% pay increase over the next five years, the contract will eliminate pensions for new workers hired after June 30.
The biggest gainer on the NASDAQ was Endo International, which rose 0.95 or 3.50% to 28.13. Shares in Liberty Global (NASDAQ:LBTYA) finished just above Apple (NASDAQ:AAPL, which added 1.54 or 1.64% to 95.18, halting an eight-day losing streak. It came in the wake of CEO Tim Cook's comments on increased iPhone growth opportunities in India, due to soaring demand among the nation's Millennials under 25. Currently, nearly a quarter of India's population is comprised of the demographic, Cook told CNBC. Had Apple closed lower on Tuesday, the tech giant would have suffered its first nine-day skid since 1991. The worst performer was SBAC, which lost 6.16 or 5.86% to 99.03.
The top performer on the S&P 500 was FMC Corporation (NYSE:FMC), which gained 3.20 or 7.34% to 46.82 after the Philadelphia-based chemical manufacturing company saw its revenues spike by 21% over the first quarter. FMC Corp (NYSE:FMC). also raised its full-year adjusted EPS guidance, amid strong periods from its Agricultural Solutions and Health/Nutrition segments. The worst performer was Chesapeake Energy Corporation (NYSE:CHK), which fell 0.85 or 12.90% to 5.74. Since surging to 2016-yearly highs last week, WTI crude has tumbled 5% over the first two sessions of May. Freeport-McMoran Copper & Gold Inc (NYSE:FCX) plunged more than 11% to 12.03 after gold slid below $1,300 an ounce.
On the New York Stock Exchange, advancing issues outnumbered declining ones by a 2,312-761 margin.