The U.S. stock market on Tuesday was heading for its worst day since August, and its first two-day losing streak in more than a month.
"Investors are catching up to the fact that rates have risen", said Jonathan Mackay, investment strategist at Schroders in NY. Health insurer UnitedHealth fell 4.3 percent, the most among Dow components, while Cigna's 6.4 percent drop was the biggest on the S&P 500.
"Investors are getting a bit anxious about inflation which has led some people to believe that the Fed might be more aggressive when it comes to raising rates", said Robert Pavlik, chief investment strategist at SlateStone Wealth.
"Armenpress" reports the value of Dow Jones down by 0.67% to 26439.48 points, S&P 500 down by 0.67% to 2853.53 points, Nasdaq down by 0.52% to 7466.50 points.
Among earnings, Pfizer shares fell 3 percent.
Harley-Davidson Inc HOG.N closed down 8.0 percent after announcing it would close a Kansas City plant in the face of declining shipments. It measures the daily stock price movements of 30 large, publicly-owned US companies.
Earnings so far have been stronger than expected.
Winners and Losers: Wynn Resorts sunk 9.32 percent as the hotel and casino company continues to feel the heat from the Wall Street Journal's reporting of sexual misconduct allegations against CEO Steve Wynn. Market expectations for a rate hike are 5.2 percent, according to the CME Group's FedWatch tool.
Declining issues outnumbered advancers on the NYSE by 2,260 to 618.
The market selloff came on the heels of President Trump's first State of the Union address Tuesday evening.
The S&P 500 index showed 13 new 52-week highs and 4 new lows, while the Nasdaq recorded 26 new highs and 32 new lows.