US stocks experienced a downturn on Tuesday, with the Dow Jones Industrial Average shedding nearly 1%. The Dow closed at 40,436.70, down 0.96%, while the NASDAQ fell 0.33% to 16,829.42. The S&P 500 also saw a decline, dropping 0.44% to 5,447.01.
The downturn was attributed to a weakened sentiment among small businesses. The NFIB Small Business Optimism Index, a key indicator of economic health, dipped to 91.2 in August, marking the lowest reading in three months. This decline, from July’s reading of 93.7, reflects growing concerns among small business owners about the current economic climate.
Despite the overall market decline, some sectors showed signs of strength. Consumer discretionary shares, for example, gained 0.6% on the day. However, energy shares lagged behind, falling 1.8%.
Among individual stocks, BIO-key International, Inc. (BKYI) saw a significant surge, with shares jumping 88% to $1.95 after the company announced it had secured $500,000 in new orders from a government defense ministry. Mission Produce, Inc. (AVO) also experienced a positive day, with shares rising 21% to $12.90 following the release of better-than-expected third-quarter financial results.
However, not all companies fared well. Edgio, Inc. (EGIO) shares plunged 34% to $0.81 after the company filed for Chapter 11 bankruptcy protection. The company has entered into an agreement with Lynrock for the sale of its assets. Cognyte Software Ltd. (CGNT) also saw its shares decline, falling 12% to $6.54 following the release of second-quarter results. Alimera Sciences, Inc. (ALIM) experienced a 17% drop in its share price to $4.63 after announcing a lawsuit against ANI Pharmaceuticals to enforce its contractual obligations related to a merger agreement.
In the commodities market, oil prices fell 1.4% to $67.76, while gold prices rose 0.1% to $2,536.00. Silver traded down 0.2% to $28.60, and copper prices fell 1.1% to $4.10.
European markets also experienced a downturn, with the eurozone’s STOXX 600 index slipping 0.39%. Germany’s DAX index declined 0.73%, and France’s CAC 40 index fell 0.15%. Spain’s IBEX 35 index dropped 0.27%, and London’s FTSE 100 index fell 0.61%.
Despite the decline, there were some positive economic indicators in Europe. Regular pay in the UK, excluding bonuses, rose 5.1% year-over-year to GBP 647/week for the three months ending in July. The UK’s unemployment rate also declined to 4.1% for the period between May and July. However, industrial production in Italy decreased by 0.9% month-over-month in July, compared to a 0.5% gain in June. Spain’s industrial output also declined by 0.4% year-over-year in July. Additionally, Germany’s annual inflation rate eased to 1.9% in August, down from 2.3% in the previous month.
In Asia, markets closed mostly higher on Tuesday. Japan’s Nikkei 225 index fell 0.16%, but Hong Kong’s Hang Seng Index gained 0.22%, China’s Shanghai Composite Index rose 0.28%, and India’s BSE Sensex gained 0.44%. Japan’s machine tool orders fell 3.5% year-over-year to JPY 110,771 million for August. China’s trade surplus expanded to $91.02 billion in August, up from $67.81 billion in the same period last year.
