Dow slides more than 500 points as market selloff resumes

NEW YORK – Stocks slid Tuesday, with investors pulling back amid signs that corporate profits are cresting and potential threats to global economic growth.

The Dow was down more than 500 points, or nearly 2 percent, in early trade, while the S&P 500 and Nasdaq also slumped. 

Markets in Asia and Europe also fell. Traders are weighing the risks of Italy’s debt problems, with the euro sinking ahead of a European Commission meeting to assess the country’s budget plans. 

Also in focus is the ongoing controversy over the killing of journalist Jamal Kashoggi, with investors assessing the impact on global oil prices and on relations between the U.S. and Saudi Arabia.

More broadly, financial markets around the globe and in the U.S. are reacting to a move by major central banks to raise interest rates and to concerns about what many fear could be a prolonged trade fight between the U.S. and China. 

With a host of U.S. companies preparing to report their earnings, Caterpillar shares fell nearly 10 percent as it lowered its guidance and said that higher tariffs on U.S. steel imports were raising costs. 

Technology and bank stocks also declined. 

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