US stocks tumble on weak earnings, global selloff

Major US equity indices tracked a global stock market downturn and traded with heavy losses during the opening hour of trade on Tuesday.

A two-day rally in Chinese equities fell apart amid worries about economic growth in the world’s second-largest economy and sparked a fresh leg of a global equity selloff. 

Adding to this, concerns over Saudi Arabia's diplomatic isolation, Italy's finances and trade war fear further dented investors’ appetite for perceived riskier assets - like equities. 

Meanwhile, a round of disappointing earnings from major companies, including Caterpillar and McDonald’s, fueled concerns over the impact of rising borrowing costs and further aggravated the selling pressure.

With more than 150 companies on tap to announce their financial results, corporate profits will provide some fresh impetus and play an important role in determining the near-term trajectory.

At the time of writing this report, the Dow Jones Industrial Average was down over 350-points to 24,950 and the broader S&P 500 Index fell nearly 45-points to 2,710. Meanwhile, tech-heavy Nasdaq Composite Index underperformed the markets and tumbled around 140-points to 7,330.