After ending the previous session nearly flat, stocks moved sharply lower at the start of trading on Tuesday. The major averages dropped firmly into negative territory but have not seen much follow through on the initial downward move.
The sell-off seen at the start of trading was partly due to a negative reaction to the Bank of Japan's latest monetary policy decision.
Overnight, the Bank of Japan unanimously decided to retain its target of doubling the monetary base in two years but did not announce any new steps to curb bond market volatility.
Gold stocks have shown a substantial move to the downside in early trading, dragging the NYSE Arca Gold Bugs Index down by 2.2 percent. The weakness among gold stocks comes amid a decrease by the price of the precious metal.
Significant weakness has also emerged among airline stocks, as reflected by the 1.7 percent loss being posted by the NYSE Arca Airline Index. United Continental (UAL) has helped to lead the sector lower.
Steel, natural gas, banking, and semiconductor stocks are also seeing notable weakness, moving lower along with most of the other major sectors.
The major averages have recently bounced off their lows for the young session but continue to post steep losses. The Dow is down 117.93 points or 0.8 percent at 15,120.66, the Nasdaq is down 32.55 points or 0.9 percent at 3,441.21 and the S&P 500 is down 14.71 points or 0.9 percent at 1,628.10.
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Market Analysis
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.