US stocks dropped on Tuesday as investors fretted about Britain's exit from the European Union and the prospect of a Federal Reserve interest rate hike in coming months.
It was the second straight session of losses on Wall Street, where investors were already on edge due to the uncertainty of a tight race ahead of the Nov. 8 presidential election.
Sterling slid to its lowest in more than three decades after British Prime Minister Theresa May said the country's divorce from the EU will not be "plain sailing" and that there would be "bumps in the road."
While the weaker pound sent UK stocks surging, it raised worries among U.S. investors.
"Clearly there has been some reverberation from across the pond in terms of the prospect for a slightly more disorderly UK separation from the EU," said Bill Northey, chief investment officer for the private client group at U.S. Bank in Helena, Montana.
Angst about future interest rate hikes also returned to the fore after Richmond Federal Reserve President Jeffrey Lacker said he would have voted in favor of an increase at the latest policy meeting had he been able to do so.
Traders have priced in a 63 percent chance of the Fed raising rates in December, according to the CME Group's FedWatch tool.
Meanwhile, the International Monetary Fund lowered its 2016 growth forecast for the U.S. economy to 1.6 percent from 2.2 percent and painted a gloomy picture of the global economy.
Ten of the 11 major S&P 500 indexes fell, with the high dividend-paying utilities sector slumping 2.17 percent and telecom services down 1.67 percent.
The Dow Jones industrial average fell 0.47 percent to end at 18,168.45 and the S&P 500 lost 0.5 percent to 2,150.49.
The Nasdaq Composite dropped 0.21 percent to 5,289.66.
Investors' attention is turning to corporate profits, with third-quarter results rolling in over the next few weeks. A failure to meet already low expectations could put new pressure on an equities market already trading at valuations above historical averages.
S&P 500 companies on average are expected to post a 0.5 percent year-over-year dip in September-quarter earnings, the fifth straight quarter of declines, according to Thomson Reuters data.
In extended trade, Micron Technology was flat after the memory chipmaker reported fiscal fourth-quarter revenue above analysts' expectations.
During the session, Sears surged 6.42 percent after Bloomberg reported that the department store chain's Craftsman tool brand had attracted multiple bidders.
Declining issues outnumbered advancing ones on the NYSE by a 2.59-to-1 ratio; on Nasdaq, a 1.62-to-1 ratio favored decliners.
The S&P 500 posted 13 new 52-week highs and four new lows; the Nasdaq Composite recorded 82 new highs and 32 new lows.
About 7.2 billion shares changed hands on U.S. exchanges, in line with the 7.1 billion daily average for the past 20 trading days, according to Thomson Reuters data.
Reuters
Wed Oct 05 2016
Traders work on the floor of the New York Stock Exchange (NYSE) as the market closes in New York, US, Oct 3, 2016. REUTERS/Lucas Jackson
35 laluan bas Rapid KL terlibat penyelarasan operasi bermula hari ini
Sebanyak 35 laluan atau 13 peratus daripada keseluruhan 264 laluan bas Rapid KL di Lembah Klang termasuk bas perantara Laluan Transit Aliran Massa (MRT) terlibat dalam penyelarasan operasi.
AWANI Ringkas: Kes Bunuh | Korporat | Net Zero 2050
Ikuti rangkuman berita utama yang menjadi tumpuan sepanjang hari di Astro AWANI menerusi AWANI Ringkas.
AWANI Ringkas: Beli Kondo Mewah | Komoditi | UNESCO
Ikuti rangkuman berita utama yang menjadi tumpuan sepanjang hari di Astro AWANI menerusi AWANI Ringkas.
Pemecatan salah: Bekas pengurus menang saman terhadap BNM
Mahkamah Tinggi hari ini memutuskan bahawa pemecatan bekas pengurus Bank Negara Malaysia (BNM) kerana menyertai aktiviti politik pada 2016 sebagai tidak sah dan menyalahi undang-undang.
AWANI 7:45 [29/03/2024] – Malaysia ada undang-undang | Sindiket seludup membabitkan Kastam | Pegawai polis lindungi kegiatan haram
Ketua Polis Negara beri amaran jangan ambil tindakan sendiri.
Rugi RM2 bilion akibat seludup.
SPRM jangka ada bos lebih senior lindungi kegiatan haram.
RM37.6 juta tampung kos tol percuma sempena Aidilfitri.
Rugi RM2 bilion akibat seludup.
SPRM jangka ada bos lebih senior lindungi kegiatan haram.
RM37.6 juta tampung kos tol percuma sempena Aidilfitri.
Guru wanita cabul pelajar direhatkan - Fadhlina
Guru wanita yang didakwa mencabul seorang pelajar lelaki dalam kes tular baru-baru ini, direhatkan sehingga siasatan kes itu selesai.
Umat Islam perlu pertahan tradisi ilmu, akliah Al-Azhar - PM
Perdana Menteri Datuk Seri Anwar Ibrahim menggesa umat Islam di negara ini untuk terus pertahankan tradisi ilmu serta akliah, yang dihidupkan oleh Universiti Al-Azhar (Al-Azhar), Mesir.
Consider This: Kesuma — First 100 Days as Human Resources Minister
It's been a little over 100 days since the cabinet reshuffle when Steven Sim was moved from being one of two Deputy Finance Ministers to holding a full Human Resources portfolio. How has he fared so far? On this episode of #ConsiderThis Melisa Idris speaks to Steven Sim about his first 100 days as the Minister of Human Resources.
Haji furada: Syarikat pelancongan diperintah bayar RM634,000 kepada 25 bekas pelanggan
Kesemua 25 individu selaku plaintif berjaya membuktikan tuntutan terhadap syarikat itu yang dinamakan sebagai defendan dalam saman berkenaan.
Kerajaan Pahang pertimbang bonus raya penjawat awam - MB
Datuk Seri Wan Rosdy Wan Ismail berkata pihaknya sedang meneliti kedudukan kewangan terlebih dahulu sebelum sebarang keputusan dimuktamad.
Tidak realistik untuk runding semula protokol - Suruhanjaya Eropah
Badan eksekutif Kesatuan Eropah itu akan melancarkan prosedur pelanggaran bagi melindungi pasaran tunggal blok itu daripada risiko pencabulan protokol.
Pasca-Brexit: Kekurangan bekalan makanan dibimbangi di UK
Bermula 1 Jan, pengimport mesti membuat pengisytiharan kastam penuh mengenai barangan yang dibawa masuk ke UK dari EU atau negara lain.
Pemuda UMNO cadang pembentukan Kabinet Perang
Perdana Menteri boleh meletakkan jawatan atau menasihati Yang di-Pertuan Agong untuk membubarkan Parlimen jika tidak lagi mendapat majoriti.
Berita antarabangsa pilihan sepanjang hari ini
Antara pelbagai berita luar negara yang disiarkan di Astro AWANI, berikut adalah antara yang paling menjadi tumpuan sepanjang hari ini.
Pasca-Brexit: Kesatuan Eropah tidak akan runding semula perjanjian asal
Kerajaan UK sebelum ini menyatakan, pemeriksaan sempadan yang dikenakan terhadap barangan dari Ireland Utara terbukti tidak dapat dilaksanakan.
Berita antarabangsa pilihan sepanjang hari ini
Antara pelbagai berita luar negara yang disiarkan di Astro AWANI, berikut adalah antara yang paling menjadi tumpuan sepanjang hari ini.
Hubungan dengan EU: UK minta runding semula babitkan peraturan dagang
Protokol itu perlu ditulis semula kerana ia melemahkan proses perdamaian dan mempengaruhi kehidupan rakyat di Ireland Utara.
Pasca-Brexit: Parlimen Eropah akan sahkan perjanjian perdagangan
Rancangan asal EU bertujuan mengelak pembukaan sempadan antara Ireland dengan Ireland Utara menjadi pintu belakang bagi bekalan vaksin.
Nelayan Britain berdepan risiko hilang pendapatan susulan larangan eksport EU
Larangan itu dibuat selepas Britain meninggalkan EU pada 1 Januari lalu, yang mana hasil laut yang berkenaan perlu dibersihkan sebelum digunakan dan tidak boleh dijual kepada 27 ahli blok berkenaan.
Kalau tidak politik, kami nak main apa, Mak Yong, congkak? - Salahuddin Ayub
Pakatan Harapan (PH) akan terus berpolitik demi memastikan suara rakyat terus didengari meskipun ada desakan supaya sebarang bentuk politik dihentikan buat masa ini.