Stocks retreated Tuesday as a decline in bank shares dampened investor sentiment.
The Dow Jones Industrials dropped 422.18 points, or 1.2%, to begin Tuesday at 35,050.95. Monday, the 30-stock index had had its best day since June 15.
The S&P 500 index lost 45.34 points, or 1%, to 4,473.10.
The NASDAQ index deleted 171.7 points, or 1.2%, to 13,822.70.
Banks fell broadly after Moody's downgraded the credit rating on several banks, including M&T Bank and Pinnacle Financial. The credit agency also placed Bank of N.Y. Mellon and State Street on review for a downgrade.
Goldman Sachs decreased 3% and JPMorgan Chase traded more than 2% lower.
Traders also parsed through the latest batch of earnings. UPS shares dropped more than 2% after the delivery giant reported weaker-than-expected revenue for the second quarter. The company also lowered its full-year revenue outlook. Educational technology company Chegg popped more than 6% after reporting second-quarter revenue of $183 million, beating analysts' estimate of $177 million.
The corporate earnings season has so far been better-than-anticipated. With 89% of S&P 500 stocks done reporting quarterly results, about four-fifths of them have beaten Wall Street's expectations.
Prices for the 10-year Treasury gained sharply, lowering yields to 4% from Monday's 4.08%. Treasury prices and yields move in opposite directions.
Oil prices sank 88 cents to $81.06 U.S. a barrel.
Gold prices slid eight dollars to $1,962.00 U.S. an ounce.
Selloff Intensifies, Dow Plummets 400+