Wall Street ends lower as Pelosi visits Taiwan

STORY: Stocks ended lower Tuesday as geopolitical tensions between the U.S. and China flared during House Speaker Nancy Pelosi's trip to Taiwan.

The Dow fell nearly a percent and a quarter. The S&P 500 dropped two thirds of a percent, while the Nasdaq ended down fractionally.

Payne Capital Management's president, Ryan Payne, said investors should look past Pelosi's visit to the Chinese-claimed self-ruled island.

“Everyone's very, very nervous about what's going to happen with China, what's going to happen to Taiwan. And, you know, with Nancy Pelosi being there right now, what kind of response are you going to get out of China. I think that's the real issue right now. But if you look the fundamentals of the market right now, markets really are driven by earnings and earnings are coming in better than expected. And fundamentally, the economy right now is not broken. This isn't your father's recession. You know, it's a very light recession if any recession at all. Unemployment's low. Interest rates are going to start to equalize here. The Fed's going to start to become more dovish. These are all reasons to reposition your portfolio, get invested and be bullish.”

Shares of chipmakers heavily exposed to China fell as Pelosi touched down in Taiwan.

Shares of AMD rose more than 2.5% ahead of its quarterly results after the bell, but the stock fell in extended trading after the chip designer forecast third-quarter revenue below estimates.

Shares of U.S. defense companies rallied for much of the session and ended with gains. The U.S. is Taiwan's main supporter and arms supplier.

Shares of Caterpillar tumbled 5.8% after the industrial bellwether warned of a bigger drop in demand for its excavators in China, piling more pain amid supply-chain disruptions.

And shares of Uber jumped almost 19% after the ride-hailing firm reported positive quarterly cash flow for the first time ever and forecast upbeat third-quarter operating profit.

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting