Investing.com – U.S. stocks closed lower on Tuesday, easing from record highs as a slump in energy weighed on the broader market while investors mulled over comments from Washington suggesting that stronger economic growth relied on overhauling the tax system.
Investors fled energy stocks, after oil prices continued to fall amid growing concerns that an uptick in global production would derail Opec’s efforts to reduce supply.
U.S. crude for August delivery fell 2.2% to settle at $43.23, its lowest level in more than seven months.
Meanwhile, comments from Washington failed to lift sentiment, as House Speak Paul Ryan said Tuesday that he believed tax reform is “absolutely essential” for getting faster sustainable economic growth.
Ryan’s comments came ahead of Treasury Secretary Steven Mnuchin’s, who predicted that "massive tax reform" that includes cuts and changes to the system will be completed this year.
Earlier during the session, Boston Fed President Eric Rosengren bolstered expectations for an interest rate hike, saying low interest rates do pose financial stability concerns that central bankers and the private sector must take seriously.
In corporate news, Amazon (NASDAQ:AMZN) announced Prime Wardrobe, its new fashion platform, which would allow customers to order items like shoes, clothes or accessories at no upfront charge, paying only for the items they decide to keep.
The Dow Jones Industrial Average closed at 21,467.14. The S&P 500 closed 0.67% lower while the Nasdaq Composite fell to 6188.03, down 0.82%.
The ‘Bulls and Bears’ on Wall Street
The top Dow gainers for the session: Merck & Company Inc (NYSE:MRK) up 1.3%, Pfizer Inc (NYSE:PFE) up 1%, while American Express Company (NYSE:AXP) rose 0.8%.
General Electric Company (NYSE:GE) down 2.3%, Intel Corporation (NASDAQ:INTC) down 1.8% and Walt Disney Company (NYSE:DIS) down 1.4%, were among the worst Dow performers of the session.