Stocks Ended Sharply Lower on Policy Uncertainty

U.S. stocks closed sharply lower on Tuesday as investors focused on heightened tensions between the West and North Korea and worries about a lack of progress on President Donald Trump’s pro-growth agenda. The Dow Jones Industrial Average fell 234.25 points, 1.07%, to 21,753.31. The S&P 500 declined 18.70 points, or 0.76%, to 2,457.85. The Nasdaq Composite dropped 59.76 points, or 0.93%, to 6,375.57.

U.S. oil prices saw on their highest finish in three weeks on Tuesday. October West Texas Intermediate crude oil advanced $1.37, or 2.9%, to settle at $48.66 a barrel. November Brent oil rose $1.04, or 2%, to $53.38 a barrel.

New orders for U.S.-made goods recorded their biggest drop in nearly three years in July, but demand for capital goods was stronger than previously reported, pointing to a faster pace of business spending early in the third quarter. Factory goods orders tumbled 3.3 percent amid a slump in demand for transportation equipment, the Commerce Department said on Tuesday.