US markets fall as commodity stocks hit
NEW YORK—US stocks suffered heavy losses Tuesday, dragged down by the materials and energy sectors.
The Dow Jones Industrial Average fell 0.95 percent at the close, down 117.53 points to 12,263.58.
Alcoa shares fell around six percent by the end of trade, after it reported solid earnings but lower than expected revenues.
The aluminum giant recorded $308 million in net earnings for the three months to March 31, compared with $258 million the previous quarter.
Alcoa was joined in the red by fellow Dow heavyweight Chevron, which lost 3.3 percent on news that oil prices fell nearly four dollars for the main US contract, on suggestions that demand may soften.
Stocks traded at a loss throughout the day, which started with negative news from Japan.
“In Asia, news that the Fukushima nuclear crisis was elevated on par with Chernobyl rocked equities,” said Kimberly DuBord of Briefing.com.
The Nikkei lost 1.7 percent.
Meanwhile, news that Cisco was slashing 550 jobs and closing Flip video camera business, which it bought in March 2009 for $590 million, sent its shares down by 0.2 percent.
The tech-rich Nasdaq Composite lost 26.72 points (0.96 percent) at 2,744.79.
The S&P 500-stock index, a broad measure of the markets, fell 10.30 points (0.78 percent) to 1,314.16.
The bond market rose. The yield on the 10-year Treasury was 3.50 percent, down from 3.57 percent on Monday, while that on the 30-year bond stood at 4.58 percent, down from 4.63 percent.
Bond prices and yields move in opposite directions.
