NEW YORK, New York – U.S. stocks were largely unsettled Tuesday after U.S. House Speaker Nancy Pelosi arrived in Taiwan, the first visit to the island by a U.S. leader in a quarter century. The visit was condemned by China, heightening geopolitical tensions in the region.
Investors were also expressing concern about the possibility and extent of more Fed rate hikes after the Reserve Bank of Australia hoisted official interest rates by 50 basis points, the fourth consecutive monthly increase.
“The market has to get really comfortable that they have fully baked in all the Fed’s rate hikes, and I think that remains an open question,” Rob Haworth, senior investment strategist at U.S. Bank Wealth Management in Seattle told Reuters Tuesday.
“The challenges and supply constraints aren’t necessarily done. They aren’t done and gone yet.”
The Dow Jones industrials bore the brunt of the damage Tuesday. The benchmark index tumbled 402.23 points or 1.23 percent to 32,396.17.
The Nasdaq Composite dipped 20.32 points or 0.16 percent to 12,348.76.
The Standard and Poor’s 500 fell 27.44 points or 0.67 percent to 4,091.19.
The U.S., dollar recoiled, sending the euro down to 1.0168 approaching the New York close Tuesday. The British pound slumped to 1.2167. The Japanese yen was sharply lower at 133.10. The Swiss franc fell to 0.9573.
The Canadian dollar was friendless at 1.2873. The Australian dollar dived to 0.6922. The New Zealand dollar sank to 0.6257.
Overseas, the FTSE 100 in London slipped 0.06 percent. The German Dax was down 0.23 percent. The Paris-based CAC 40 fell 0.42 percent.
The Australian All Ordinaries gained 3.40 points or 0.05 percent to 7,216.40.
In New Zealand, the S&P/NZX 50 added 6.59 points or 0.52 percent to 11,532.46.
In Japan, the Nikkei 225 shed 398.62 points, or 1.42 percent to 27,594.73.
South Korea’s Kospi Composite let go 12.63 points or 0.52 percent to 2,439.62.
In China, the Shanghai Composite weakened by 73.69 points or 2.26 percent to 3,186.27.
In Hong Kong, the Hang Seng lost 476.63 points or 2.36 percent, to close Tuesday at 19,689.71.