"This market rally for the last nine years has been driven by low interest rates, accommodating monetary policy and excess liquidity", said Oliver Pursche, chief market strategist for Bruderman Asset Management in NY. Industrials fell 0.6 per cent as shares of railroad companies lost ground. But later in the day, the industrial giant's stock declined, closing the session down 6.8%. Comcast also reported a first-quarter earnings beat on in-line revenue.
TheStreet reports that Halverson also said that following the steel and aluminum tariffs announced a few weeks ago, there will most likely be losses stemming from other commodities that dependent upon the pricing from that market.
Goodyear Tire & Rubber fell 4.9 percent after warning of higher expenses for raw materials.
The recent slide down in equities is occurring even though a string of strong corporate earnings.
Comcast rose 2.7 percent after the largest US cable company confirmed its $31 billion bid for Sky on the heels of its better-than-expected earnings report. "We could see more response as we get into the heart of earnings season", Warne said. "Both however are selling off while noting that the tariffs will have a negative impact on profits", said David Kudla, Founder, CEO, and Chief Investment Strategist at Mainstay Capital Management.
Apple Inc shares lost per cent as worries over softening demand for high-end smartphones were underscored as Corning Inc reported a drop in screen glass sales for the first time in at least four quarters.More news: Liverpool prioritise safety after fan assaulted before Roma Champions League tie
Apple (AAPL) dipped 0.5%, while Facebook (FB) rose 0.3% ahead of its first-quarter results, due out after today's close.
Cree swept ahead 11% after earnings of 4 cents per share and a 4% rise in revenue for its fiscal third quarter easily topped expectations.
One of the stocks leading the index higher was travel website Travelzoo (NASDAQ:TZOO) which surged nearly 21% to US$9.35 after first-quarter income from continuing operations nearly tripled to US$2.5mln.
The Nasdaq is up 100.35 points, or 1.5 percent. The Dow rose 59.70 points, or 0.2 percent, at 24,083.83.
The market finds itself in a more cautious stance heading into Wednesday's open, with all three leading indexes having been shut down by resistance at their 50-day moving averages.
Oil rose above $75 a barrel to its highest level since November 2014, but then reversed course as U.S. President Donald Trump and French President Emmanuel Macron pledged to try to resolve U.S.