U.S. stocks fell on Tuesday as some large tech stocks moved lower and new inflation data continued to show a sharp rise in prices.
The Dow Jones Industrials dumped 106.77 points to 35,544.18,
The S&P 500 index lost 34.88 points to 4,634.09.
The NASDAQ came off its lows of the day, but still suffered 175.64 points at 15,237.64.
Tech stocks were a main source of weakness on Tuesday, though the sector trimmed its losses in afternoon trading. Microsoft was a major drag on the market averages, falling more than 3%. Fellow software stock Adobe dropped 6.6%.
Elsewhere, automaker Ford slid 1.9% following news that by 2030 Toyota would be investing $35 billion into battery-powered electronic vehicles, a space where Ford has sought to establish itself as a leader. Tesla shares fell 0.8% after CEO Elon Musk announced that that he has sold another $906.5 million in shares.
On the positive side for the market, major bank stocks rose along with interest rates, with Goldman Sachs and Bank of America each adding more than 1%. Regional banks and energy stocks also outperformed.
On the COVID front, Pfizer announced that its drug aimed at treating patients with the virus proved effective in a final analysis, including against the new omicron variant. However, the World Health Organized warned on Tuesday that the new variant appeared to be spreading faster than previous versions of the virus.
The downfall for stocks comes after the November reading for the producer price index showed a year-over-year increase of 9.6%, the fastest pace on record and above the 9.2% expected by economists, according to Dow Jones. The index rose 0.8% month over month, above the 0.5% expected.
The hotter-than-expected inflation reading comes as the Federal Reserve also kicks off its two-day meeting on Tuesday. The central bank will release a statement on Wednesday with quarterly projections for the economy, inflation and interest rates. Chairman Jerome Powell will also hold a press conference.
Prices for 10-year Treasurys fell a bit, raising yields to 1.44% from Monday’s 1.42%. Treasury prices and yields move in opposite directions.
Oil prices unloaded 90 cents to $70.39 U.S. a barrel.
Gold prices let go of $16.40 to $1,771.90 U.S. an ounce.