US markets close lower; snap 5-day winning streak

The US markets closed lower on Tuesday, snapping their five-day winning streak as supply woes weighed on oil prices and worries about a prolonged slowdown in China resurfaced. Crude-oil prices tumbled as traders bet that weekly data will reveal a fourth straight climb in US crude inventories and as the market resumed its doubts over the potential for an output freeze. On the economy front, small-business owners turned less confident about their economic prospects last month, with lackluster sales crimping margins and ongoing uncertainty over the economic outlook and political landscape pinching spending plans. The National Federation of Independent Business’ small-business optimism index, based on a survey sent to about 5,000 owners, slipped 1 point to 92.9, the lowest level in about two years. In 2015, the gauge averaged 96.1. Six of the index’s 10 components fell last month while the rest were unchanged from January. A decline in expectations for future sales and unfavorable earnings trends--higher compensation costs alongside diminishing pricing power--pulled the overall gauge lower. Small-businesses, which account for about half of American jobs, cooled hiring last month, though nearly half of the survey’s respondents still said they tried to increase payrolls.

The Dow Jones Industrial Average lost 109.85 points or 0.64 percent to 16,964.10, the Nasdaq was down 59.42 points or 1.26 percent to 4,648.83 while, the S&P 500 dropped 22.50 points or 1.12 percent to 1,979.26.

The Indian ADRs closed in red; Tata Motors was down 1.01%, Dr. Reddy’s Lab was down 0.97%, HDFC Bank was down 0.79%, Infosys was down by 0.49% and ICICI Bank was down 0.35%.