Following two huge days of gains, stocks retreated on Tuesday with the major U.S. stock indexes, the Dow Jones industrial average, the S&P 500 and the Nasdaq, all falling in early trading.
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This follows a day that saw the Dow surge more than 400 points. Shares of equipment makers and steel producers rallied after the Trump administration rolled out a $1.5 trillion plan to boost spending on infrastructure.
“The size of the deficits has surprised the markets but they are more worried about increased government spending and tax cuts overstimulating the economy,” said Mark Vitner, Managing Director & Senior Economist at Wells Fargo Securities.
Oil futures were also lower in early trading Tuesday. Oil came under more pressure after the International Energy Agency’s latest report indicated that non-OPEC crude output will exceed global demand this year.