US stock indices fell on Tuesday on sharp losses in healthcare companies and Tesla.
As of 10:10 a.m. Eastern time, the Dow Jones Industrial Average was down 445 points, or 1.1 per cent; the S&P 500 was 1 per cent lower; and the Nasdaq Composite was 1.4 per cent lower.
At the opening bell, the Dow Jones Industrial Average fell 310.58 points, or 0.78 per cent, to 39,256.27. The S&P 500 opened lower by 39.48 points, or 0.75 per cent, at 5,204.29, while the Nasdaq Composite dropped 197.60 points, or 1.21 per cent, to 16,199.24.
Healthcare stocks declined on worries about the upcoming profits after the US government announced lower-than-expected rates for Medicare Advantage.
Shares of Humana tumbled 13 per cent, UnitedHealth Group fell 6.1 per cent, and CVS Health lost 8.5 per cent.
Tesla dropped 5.5 per cent on lower vehicle deliveries.
The yield on the 10-year Treasury rose to 4.38 per cent from 4.33 per cent late on Monday. The 2-year Treasury yield was flat at 4.71 per cent.
In Europe, Britain’s FTSE 100 edged up 0.3 per cent at 7,977.10 points. France’s CAC 40 rose 0.1 per cent at 8,213.17. Germany’s DAX fell 0.1 per cent at 18,466.25.
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The Euro Stoxx 50 gained 0.3 per cent at 5,096.76.
In Asian stock markets, Hong Kong’s Hang Seng Index climbed 2.4 per cent at 16,931.52. China’s Shanghai Composite fell 0.1 per cent at 3,074.96.
Japan’s Nikkei 225 rose 0.1 per cent at 39,838.91.
Gold prices rose to another historic peak on Tuesday on growing prospect of interest rate cuts later this year.
Spot gold was up 0.5 per cent to $2,262.51 per ounce by 1055 GMT, after hitting an all-time high of $2,266.59.
Crude oil prices rose on Tuesday on supply worries due to Ukrainian attacks on Russian energy facilities.
Brent futures for June delivery were up $1.15, or 1.3 per cent, at $88.57 a barrel by 1333 GMT. US West Texas Intermediate (WTI) crude futures for May rose $1.34, or about 1.6 per cent, to $85.05.
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Read More: World markets today: US stocks fall led by healthcare shares