NEW YORK — Stocks fell broadly Tuesday as commodity prices retreated. Crude oil sank more than 4 percent. Investors remained worried about growth in China as the country cut the value of its currency against the dollar yet again.
Investors were also discouraged by a report showing that consumer confidence fell to its lowest level in seven months.
The Dow Jones industrial average fell 188.88 points, or 1.14 percent, to 16,431.78. The Standard & Poor’s 500 index lost 24.23 points, or 1.3 percent, to 1,921.27, and the Nasdaq composite fell 67.02 points, or 1.5 percent, to 4,503.58.
As has happened multiple times this year, stocks fell in tandem with energy prices.
Saudi Arabia’s oil minister said Tuesday that production cuts to boost oil prices won’t work and said the world’s oil market should be allowed to work even if that forces some operators out of business. He also said he expects oil prices to remain low for some time.
Crude oil fell $1.52, or 4.6 percent, to $31.87 a barrel, while Brent crude, which is used to price oils internationally, fell $1.42, or 4.1 percent, to $33.27 a barrel in London.
Energy stocks fell far more than the rest of the market, with the energy component of the S&P 500 dropping 3.2 percent.
It’s not uncommon to see stocks give up some of their gains after a strong multiday run like last week’s, but traders say the mood in the market is cautious. They note that trading volume has been far lighter on days the market has risen and heavier on days it has fallen. That suggests there is more interest among investors in getting out of stocks than there is in getting in.
Investors were also still watching developments in China, where the People’s Bank of China announced it had cut its daily rate between the yuan and the dollar more than expected. The weakening yuan was a major cause of market turmoil in August 2015 as investors worried that it signaled a slowdown in China’s economy.
Here in the U.S., a report from the Conference Board showed U.S. consumer confidence fell to 92.2 in February, down sharply from 97.8 in January and the lowest level since July. Consumers expressed worries about deteriorating business conditions and turbulence in the financial markets for their drop in confidence.
