Banks and energy companies led a broad slide for stocks on Wall Street Tuesday, handing the S&P 500 its sixth loss in the last seven trading days.
The S&P 500 fell 0.6% after an early gain faded by midafternoon. The benchmark index's 11 sectors all ended in the red, with banks, energy stocks and industrial and communication companies among the biggest drags on the index. The selling more than offset the S&P 500's modest gain from a day before.
The market had started higher after the latest data on inflation came in better than economists had expected, but reversed course within the first hour of trading, suggesting the report didn't ease investors' inflation worries. On Friday, the government reported that U.S. wholesale prices jumped sharply in August.
“There are still inflationary pressures even if they (consumer prices) came in lower than expected,” said Kristina Hooper, chief global market strategist at Invesco. “It doesn't mean that it's over.”
The S&P 500 fell 25.68 points, to 4,443.05. The Dow Jones Industrial Average dropped 292.06 points, or 0.8%, to 34,577.57. The Nasdaq composite fell 67.82 points, or 0.5%, to 15,037.76.