US stocks join global selloff on mixed earnings, Saudi unease
New York, Oct 23, 2018 (AFP) US stocks joined a global selloff early Tuesday, falling sharply in opening trading on the heels of mixed earnings and rising geopolitical unease over Saudi Arabia and other global hotspots.
About 10 minutes into trading, the Dow Jones Industrial Average was down 1.3 percent to 24,986.20, extending Monday's downturn.
The broad-based S&P 500 fell 1.4 percent to 2,717.38, while the tech-rich Nasdaq Composite Index tumbled 1.7 percent to 7,343.20, erasing the modest gains in the prior session.
The Dow was weighed down by deep declines in industrial heavyweights Caterpillar and 3M, which have faced higher costs due to trade tariffs and are vulnerable to an economic slowdown in China.
Caterpillar fell 7.7 percent and 3M 6.8 percent.
Analysts also cited a speech by Turkish President Recep Tayyip Erdogan, who said Saudi Arabia had carried out the premeditated murder of journalist Jamal Khashoggi that has prompted international condemnation.
Another worry is Italy's budget standoff with the European Union, has revived worries about the stability of the trading bloc. Bourses in Europe and Asia also dropped.
