S&P 500 snaps a 3-day winning streak

U.S. stocks closed lower Tuesday as a swift sell-off in the final minutes of trading wiped out earlier gains and snapped a three-day winning streak for the market.

Technology companies and banks led the market slide, outweighing gains in health care and energy stocks.

The S&P 500 index fell 13.49 points, or 0.5 percent, to 2,713.22. The Dow Jones Industrial Average slid 132.36 points, or 0.5 percent, to 24,174.82. The Nasdaq lost 65.01 points, or 0.9 percent, to 7,502.67. Smallercompany stocks bucked the broader market decline. The Russell 2000 index picked up 5.33 points, or 0.3 percent, to 1,660.42.

The trading session was shortened ahead of the Independence Day holiday. Once investors return Thursday, they’ll have no shortage of reasons to snap out of the holiday lull by the end of the week.

On Friday the U.S. is set to impose a 25 percent tariff on $34 billion worth of Chinese imports. And China is expected to strike back with tariffs on a similar amount of U.S. exports. The big question is how far the two countries will go in their dispute.

“The market might get worked up about a tit-for-tat retaliation, which we’ll probably see,” said Scott Wren, senior global equity strategist for the Wells Fargo Investment Institute. “There’s a relatively low probability of an all-out trade war.”

The Trump administration has said it won’t target an additional $16 billion worth of Chinese goods until it gathers further public comments. It’s also identifying an additional $200 billion in Chinese goods for 10 percent tariffs, which could take effect if Beijing retaliates.

Uncertainty over U.S. trade policy has hung over the market since late February.

Investors will also have their eye Friday on the Labor Department’s monthly jobs and wage report. Analysts expect the report will show that hourly wages rose 2.8 percent last month.