Stocks Retreated, Oil Futures Settled Lower

U.S. stocks ended sharply lower on Tuesday, with pressure attributed to the implementation of new tariffs by U.S. and China on each other as well as data that indicated the first contraction in manufacturing activity since 2016. The Dow Jones Industrial Average fell 285.26 points, or 1.08%, to 26,118.02. The S&P 500 dropped 20.19 points, or 0.69%, to 2,906.27. The Nasdaq Composite declined 88.72 points, or 1.11%, to 7,874.16.

Oil on Tuesday as the latest round of tariffs in the U.S.-China trade war contributed to worries over the global economy, and demand for crude. October West Texas Intermediate oil fell $1.16, or 2.1%, to settle at $53.94 a barrel.

The U.S. manufacturing sector shrank in August, according to the Institute for Supply Management’s purchasing manager’s index, which showed a reading of 49.1 last month, down from 51.2 in July, its lowest since January 2016. Any reading below 50 indicates contraction.

Coupa Software Inc. (COUP), the cloud company, reported second-quarter results that exceeded Wall Street estimates. Coupa reported non-GAAP earnings of 7 cents a share. Revenue soared 54% to $95.1 million. The company raised the revenue forecast for its current fiscal 2020 year to between $369 million and $372 million, up from $342 million to $344 million.