US stocks erase much of an early swoon

Stocks clawed back much of the ground they lost in an early plunge but still ended lower, continuing a dismal month for the stock market.

Major indexes pulled back sharply in early trading Tuesday, wiping nearly 550 points off the Dow Jones Industrial Average.

Traders blamed worries over slowing growth in China and costs related to President Donald Trump’s trade policies.

Caterpillar lost 7.6 percent after saying taxes on imported steel were driving up costs.

Big gains by McDonald’s and Verizon helped soften the losses elsewhere.

The S&P 500 fell 15 points, or 0.6 percent, to 2,740. The index is 6.5 percent below the peak it reached a month ago.

The Dow lost 125 points, or 0.5 percent, to 25,191. The Nasdaq slipped 31 points, or 0.4 percent, to 7,437.