May 19, 2020

Here’s what happened to the stock market on Tuesday

[CNBC, Getty Images]

Dow Jones Industrial Average falls 390 points

The Dow slid 390.51 points, or 1.59%, to 24,206.86. The S&P 500 fell.1.05% to close at 2,922.94. The Nasdaq Composite advanced 0.54% to 9,185.10. Wall Street took a breather on Tuesday following a massive rally in the previous session.

Mnuchin, Powell testify

Investors turned their attention to Washington as Treasury Secretary Steven Mnuchin and Federal Reserve Chairman Jerome Powell testified before the Senate Banking Committee. Mnuchin said the government is “fully prepared to take losses” on coronavirus business bailouts. Powell noted “this is the biggest response by Congress ever and the fastest and biggest from us,” referring to the Fed’s and Congress’ efforts to stimulate the economy during the pandemic.

Walmart and Home Depot fall

Walmart shares led the Dow lower with a 2.12% loss. The retail giant’s stock had traded higher earlier in the session before closing lower. Home Depot slid 2.95%.

What happens next?

Fed minutes are set for release Wednesday along with mortgage applications data.

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