Investing.com -- U.S. stocks fell sharply on Tuesday, halting a five-day winning streak, as a weeklong rally in crude prices faded and disappointing monthly export data in China spilled over to global equity markets.
In overnight trading, China's Customs bureau reported that exports fell by 25.4% on an annual basis in February, extending losses from a month earlier when they dipped by 11.2% on the month. With the considerable declines, Chinese exports last month fell by their highest monthly rate since the peak of the Financial Crisis. U.S. equities also retreated on Tuesday after crude futures fell by more than 2.5%, following reports that Kuwait may be unwilling to take part in a OPEC-Non OPEC output freeze unless Iran also participates in the comprehensive deal.
The Dow Jones Industrial Average fell 110.60 or 0.65% to 16,963.35, while the S&P 500 Composite Index lost 22.48 or 1.12% to 1,979.28, as both indices moved lower for the first time in six sessions. The NASDAQ Composite index, meanwhile, dipped 59,42 or 1.26% to 4,648.83, amid declines in pharmaceutical and semiconductor stocks. On the S&P 500, nine of 10 sectors closed in the red as stocks in the Energy and Basic Materials industries lagged. For the session, energy stocks tumbled by more than 4%. Stocks in the Utilities sector led, after finishing as the lone industry in the green.
The top performer on the Dow was Microsoft Corporation (NASDAQ:MSFT), which added 0.76 or 1.48% to 51.79 after the tech giant renewed its Android patent licensing agreeing, which will cover Winstron's tablets, mobile phones, e-readers and other consumer devices under a widespread patent portfolio. The worst performer was Caterpillar Inc (NYSE:CAT), which fell 2.75 or 3.68% to 72.02. Shares in Caterpillar plunged on Tuesday after analysts at GS expressed skepticism toward the recent rally in commodities, citing a weak credit environment in China. Caterpillar, the world's largest construction and mining equipment manufacturer, is extremely sensitive to large declines in commodity prices.
The biggest gainer on the NASDAQ was Costco Wholesale Corporation (NASDAQ:COST), which jumped 2.98 or 2.01% to 151.15. Costco finished just ahead of Walgreens Boots Alliance Inc (NASDAQ:WBA), which added 1.32 or 1.67% to 80.47. Earlier this week, the company announced that it will work with the Centers for Disease Control and Prevention (CDC) to help educate the public on preventive steps needed to avoid the Zika Virus in Puerto Rico. The worst performer was Micron Technology Inc (NASDAQ:MU), which lost 0.91 or 7.82% to 10.68. Over the last 52-weeks, shares in the Idaho-based semiconductor have fallen more than 55%.
The top performer on the S&P 500 was Urban Outfitters Inc (NASDAQ:URBN), which surged 4.53 or 16.09% to 32.69. On Monday after the bell, the Philadelphia-based retailer eclipsed analysts' forecasts with their fourth quarter earnings. The worst performer was Chesapeake Energy Corporation (NYSE:CHK), which lost 0.93 or 17.78% to 4.30. Last week, shares in the Oklahoma oil and gas company more than doubled following the death of former CEO Aubrey McClendon in a fiery car crash. McClendon's death came hours before he was scheduled to appear in Federal Court to answer charges in an alleged bid rigging case. Chesapeake shares soared last week after the company was granted immunity by the Department of Justice.
On the New York Stock Exchange, declining issues outnumbered advancing ones by a 2,293-813 margin.