Dow falls 200 points after Home Depot sales miss, interest rates advance
The Dow Jones industrial average fell more than 150 points shortly after the opening bell, led lower by Home Depot and Boeing. The S&P 500 fell more than 0.6 percent after market open amid losses in information technology and consumer discretionary stocks.
The Nasdaq composite fell more than 1 percent as Apple, Amazon, Microsoft and Google-parent Alphabet all fell more than 1 percent.
The slip in U.S. equities came after Home Depot reported first-quarter earnings that beat Wall Street's expectations, but missed estimates on the top line thanks to what the company categorized as a "slow start" to spring sales.
Spring is an especially important season for the home improvement retailer as shoppers traditionally stock up on gardening supplies and renovation materials. Customer transactions, however, fell 1.3 percent during the quarter.
Shares fell 2.5 percent in premarket trading following the report.
Stocks also slipped after the Commerce Department reported retail sales increased 0.3 percent in April, down from a 0.8 percent gain in March, which was revised higher. The solid read on consumer spending, however, was accompanied by an uptick in interest rates, a move some market watchers blamed for a further decline in futures.
The benchmark U.S. 10-year Treasury yield, which moves inversely to its price, hit 3.058 percent on Tuesday, its highest read since 2011. The dollar index, which tracks the dollar against a basket of other currencies, was up nearly 0.4 percent at 92.93.
Hogan added that, while investors may have originally doubted that the Federal Reserve would be bold enough to hike rates four times in 2018, the market is gradually starting to "come around" to the idea that the Fed could hike rates in June, September and December.
The Fed, tasked with keeping inflation around 2 percent and maintaining healthy unemployment levels, considers economic data when deciding whether to increase the benchmark federal funds rate. Despite a narrow CPI miss last week, personal consumption expenditures — the Fed's preferred inflation metric — is now near the central bank's target.
Overseas, the Stoxx Europe 600 was largely unchanged after data revealed a deceleration in euro-area economic growth to 0.4 percent in the first quarter, down from 0.7 percent in the fourth quarter of last year.
Germany, the eurozone's largest economy, cooled to 0.3 percent growth in the first quarter, down from 0.6 percent in the prior quarter.