U.S. stock-market indexes closed lower on Tuesday, reversing earlier gains as losses in the technology and financials sectors outweighed advances in energy, telecoms and real-estate shares.

Trading volumes were lower than normal because of the Fourth of July holiday on Wednesday. Markets closed at 1p.m. Eastern, three hours earlier than normal, and they will be closed all day on Wednesday.

The S&P 500 SPX, +0.29% ended 13.49 points, or 0.5%, lower to 2,713.22 with five of its 11 main sectors finishing in negative territory. The technology sector led the declines, down 1.4%.

The selloff in the tech sector accelerated after news that Micron Technology was temporarily blocked from selling some of its memory chips in China, sending other semiconductors sharply lower.

Financials fell 1%, while consumer discretionary stocks lost 0.6%. These losses outweighed gains in energy shares, which gained 0.7%.

The Dow Jones Industrial Average DJIA, +0.19% closed 132.36 points, or 0.5%, lower to 24,174.82.

The Nasdaq Composite Index COMP, +0.36% , meanwhile, declined 65.01 points, or 0.9%, to 7,502.67.

The Russell 2000 index RUT, +0.02% of small-cap stocks defied the general trend, closing higher, up 5.33 points, or 0.3%, to 1,660.42.

What is driving the market?

Tuesday’s losses, which accelerated towards the end of the session, were driven by falling technology and financials shares.

Still, analysts cautioned not to read too much into moves given the low trading volumes, which can exacerbate intraday volatility.

U.S. benchmarks opened firmly higher, following gains in European equities, which were boosted after a last-minute deal on immigration in Germany. With the agreement in place, Chancellor Angela Merkel’s fragile coalition government stepped back from a full-blown crisis that could have cost Merkel her position as German leader.

The uncertainty over trade policy, however, was still hanging over markets. Planned tariffs on up to $50 billion on Chinese products are set to go into effect on Friday. The Trump administration was seen as keeping the U.S.-China tensions alive after late Monday saying it seeks to block China Mobile from operating in the U.S. market. The White House cited “national security interests” as the reason for refusing China Mobile access to the U.S.

Read: Stocks may still be underestimating the risk of a blowup in trade tensions

What are strategists saying?

“There is not much pure information that would be moving the market, but when trading volumes are low, like today, any piece of news can exaggerate moves,” said Mark Kepner, managing director of sales and trading at Themis Trading.

“Broadly speaking, markets are getting a bit more concerned about trade, though as has been the case over the past six months, tough rhetoric is almost always followed by softer solutions,” Ryan Larson, head of equity trading at RBC Global Asset Management.

Also see: How will investors know if there’s a full-blown trade war? Here’s what Wall Street says

What are other markets doing?

Asian stock markets closed mixed, with the Hong Kong Hang Seng Index HSI, -1.81% and Japan’s Nikkei 225 Index NIK, -1.10% ending lower, but the Shanghai Composite Index SHCOMP, -1.72% finishing with a 0.4% gain. Equities in Europe ended higher almost across the board.

The dollar DXY, -0.04% declined against most other major currencies, while gold prices US:GCQ8 rose 0.5%, at $1,247.60 an ounce. Crude-oil US:CLQ8 prices, which briefly topped $75 a barrel, turned flat.

Which stocks are in focus?

Shares of Micron Technology Inc. MU, -0.76% dropped 5.5% after a Chinese court temporarily blocked it from selling some of its memory chips in the country.

Tesla Inc. TSLA, +1.95% dropped 7.2%, adding to a 2.3% drop from Monday when The Wall Street Journal reported that the company’s top engineer Doug Field is leaving.

Shares of Facebook Inc. FB, +0.20% fell 24% as the federal investigation into how the social network cite has handled information about its users is getting bigger, adding with the Securities and Exchange Commission and the Federal Bureau of Investigation. Among other tech stocks, Apple Inc. AAPL, +1.02% fell 1.7% and Google-parent Alphabet Inc. GOOGL, +0.95% was down 2.2%.

Shares of Delta Air Lines Inc. DAL, -1.86% American Airlines Group Inc. AAL, -1.34% and United Continental Holding Inc. UAL, -1.02% fell after Deutsche Bank downgraded them, citing concerns over heightened geopolitical risks, highlighted by the growing trade dispute.

Delta Air Lines Inc. DAL, -1.86% shares fell 2.37%, American Airlines dropped 1.6% while United Continental fell 1.1%.

What’s on the economic calendar?

U.S. factory orders climbed 0.4% in May, which was in line with expectations.