U.S. stocks fell on Tuesday, after a near 300-point rally on the Dow evaporated amid falling commodity prices and worries Germany would throw cold water on the European Central Bank taking additional steps to bolster the region’s economy.
“We’ve gone from day-to-day volatility to intraday volatility,” Mark Luschini, chief market strategist at Janney Montgomery Scott, said. “A progression of events caused this, in the context of a market that is scared anyway, with the VIX trading above 20,” Peter Boockvar, chief market analyst at the Lindsey Group, said of the market’s about face.
“Copper prices are falling out of bed, down 5 percent, that tells you something about global growth, that something is not right,” Boockvar added. Reports from overseas that had Germany downplaying the notion of further quantitative easing by the ECB helped push the market lower, Art Hogan, chief market strategist at Wunderlich Securities, said.