Investing.com – U.S stocks extended losses on Tuesday, led by financials as uncertainty concerning the timeline of the Trump administration pro-growth policies weighed on sentiment.
U.S. equities started the session on the back foot, despite better than expected economic data as investors awaited a key House vote scheduled for Thursday on a measure to repeal and replace Obamacare.
The Commerce Department said on Tuesday, the current account deficit, which measures the difference in value between exported goods, services and interest payments, fell 3.1% to $112.4 billion.
Economist had expected the current account deficit to shrink to $128.2 billion.
Meanwhile, financials, mostly banks, extended losses in afternoon trade and weighed on the broader market, as investors worried that the Trump administration plan to replace Obamacare may take longer than expected, which would further delay the introduction of pro-growth policies such as tax-reform.
Goldman Sachs Group Inc (NYSE:GS), Wells Fargo & Company (NYSE:WFC), and Bank of America Corporation (NYSE:BAC) traded more than 3% down by 14:08 EDT as treasury yields dropped to lows.
Treasury yields dropped 1.91% with the U.S. 10-Year trading at around 2.425 by 14:14 EDT.
Meanwhile public appearances from Federal Reserve officials had a muted impact on equities.
FOMC member William Dudley spoke at an event in New York City, but did not discuss monetary policy while Cleveland Fed President Loretta Mester is due to speak later during the session.
In corporate news, Apple Inc (NASDAQ:AAPL) failed to hold onto gains despite the announcement of a new version of its iPad and special edition of the iPhone 7 and iPhone 7 plus, expected in U.S. stores on Friday.
The Dow Jones Industrial Average traded 1.08% lower at 20,680. The S&P 500 shed 1.18% and the Nasdaq Composite traded at 5,804 down 1.65%.