U.S. stocks fell on Tuesday, with the Dow snapping a seven-day winning streak, on renewed fears of slowing growth in China and another bout of selling in biotech shares.
Biotechs led the S&P 500 and Nasdaq lower and the S&P health care index .SPXHC, down 1.2 percent, had the biggest losses among S&P sectors, followed by industrials .SPLRCI, down 1.1 percent. The Nasdaq Biotech Index .NBI was down 3.2 percent, extending recent declines.
Worries about third-quarter earnings reports continued to weigh on sentiment. Earnings for S&P 500 companies are expected to have dropped nearly 5 percent year over year, which would be the worst quarter for earnings in six years, according to Thomson Reuters data.
“There’s a little nervousness about earnings reports that we’ll be seeing over the next couple or three weeks,” said John Carey, portfolio manager at Pioneer Investment Management in Boston.