NEW YORK, (Reuters) - Wall Street fell in a day of heavy trading on Wednesday with the S&P 500 posting its biggest percentage drop since late June as investors turned risk-averse on disappointing earnings and escalating global tariff worries.
Chinese technology company Tencent Holdings Ltd (0700.HK) reported its first profit decline in almost 13 years, putting pressure on the U.S. tech sector. Technology stocks were the biggest drag on the S&P 500 and the Nasdaq, with the S&P 500 technology index .SPLRCT down 1.1 percent.
Retail shares fell as Macy’s Inc (M.N) stock tumbled 15.9 percent after margin fears spooked investors, overshadowing its stronger-than-expected sales and earnings.
“There was a lot of optimism heading into retail earnings,” said JJ Kinahan, chief market strategist at TD Ameritrade in Chicago. Macy’s results have “taken an edge off that optimism.”
Second-quarter U.S. earnings have mostly been stronger than expected, with 79.1 percent beating analyst expectations, according to Thomson Reuters I/B/E/S. Results are in for 460 of S&P 500 companies.
The trade fracas heated up as Turkish President Tayyip Erdogan doubled tariffs on some U.S. imports, and China lodged a complaint with the World Trade Organization against American trade policies.
The tariff-sensitive industrial sector .SPLRCI slipped 0.5 percent, with Caterpillar Inc (CAT.N) and Boeing Co (BA.N) weighing on the Dow.
“A combination of fears of contagion from Turkey and a possibility of a China slowdown has upset markets worldwide,” Kinahan added.
The S&P 500 energy index .SPNY dropped 3.5 percent as a fall in crude prices CLc1 was exacerbated by an unexpected surge in U.S. stockpiles. The energy index suffered its biggest percentage loss since Feb. 5.
Metals prices fell, dragging down the materials sector .SPLRCM, which
