U.S. stocks finished sharply lower Tuesday as skepticism mounted over the significance of an agreement reached by the U.S. and China to postpone new tariffs and as the market digested a flattening yield curve in U.S. government debt. The Dow Jones Industrial Average sank 799.36 points, or 3.1%, to 25,027.07 with the S&P 500 index dropping 90.31 points, or 3.2%, to 2,700.06. The Nasdaq Composite Index also lost 283.09 points, or 3.8%, to 7,158.43.

European markets also closed lower, however losses were more muted than their US counterparts. The Stoxx Europe 600 fell 0.4% to 359.57, after ending up 1% on Monday and the German DAX fell 0.6% to 11,395.70. The UK’s FTSE 100 also lost 0.4% to close at 7,033.58.

US Markets closed

U.S. markets, including trading on the New York Stock Exchange and Nasdaq, will grind to a halt on Wednesday 5th December – a day which has been designated a national day of mourning by President Donald Trump – in honor of the U.S.’s 41st president, George Herbert Walker Bush, who died Nov. 30 at the age of 94. The former president will be remembered at a National Cathedral memorial service in Washington.

The Securities Industry and Financial Markets Association, an influential financial-industry trade group, has also recommended that bond markets close on Wednesday. That means that trading in bonds like the 10-year Treasury note could see limited action on Dec. 5. Futures giant CME Group will shut down trading of interest-rate and futures and options products for the day, though electronic trading and trading in energy and metals futures will have a regular session such as those for oil and gold.

OPEC meeting to cut production

The Organization of the Petroleum Exporting Countries (OPEC) and its allies are working on a deal this week to reduce oil output in an attempt to boost crude prices amid a drop caused by global economic weakness and fears of an oil glut largely due to a rise in U.S. production. The group will be meeting on Thursday in Vienna, followed by talks with allies such as Russia on Friday, adding that Russia’s resistance to a major cut was so far the main stumbling block in the coordinated efforts.

The producer group’s de facto leader, Saudi Arabia, has indicated a need for steep reductions in output from January but has come under pressure from U.S. President Donald Trump to help support the world economy with lower oil prices. Iraq’s oil minister said OPEC must come up with a medium- to long-term strategy to achieve crude price stability and minimize damage to oil markets caused by geopolitics.