Banks and other financial companies led a slide in U.S. stocks Thursday, erasing some of Wednesday's gains, when indexes soared to their latest record highs.
The Dow Jones industrial average fell 112.58 points, or 0.5 percent, to 21,002.97. The Standard & Poor's 500 index fell 14.04 points, or 0.6 percent, to 2,381.92. The Nasdaq composite index slid 42.81 points, or 0.7 percent, to 5,861.22.
Small-company stocks fell more than the rest of the market. The Russell 2000 index gave up 17.97 points, or 1.3 percent, to 1,395.67.
Materials and industrial companies also fell sharply. Energy stocks declined along with the price of crude oil. Utilities and phone company stocks bucked the broader market slide.
Investors mostly focused on the latest batch of company news and earnings reports. Traders had an eye on the Federal Reserve as speculation grew this week that the central bank will raise interest rates again later this month.
"You have the market wondering if the economy is in fact strong enough for a rate hike at this point," said Quincy Krosby, market strategist at Prudential Financial. "After the run-up we had yesterday, this is a good excuse for the market to pause."
The stock market was coming off its biggest single-day gain in nearly four months.
Bond prices fell, pushing yields higher. The 10-year Treasury note's yield rose to 2.48 percent from 2.46 percent late Wednesday.
Several Federal Reserve officials, including Chairman Janet Yellen, are scheduled to speak this week ahead of their next policy meeting later this month. Earlier this week, New York Fed President William Dudley said the case for raising interest rates had gotten stronger. That's helped fuel speculation that the central bank will raise interest rates again this month.
"While it's plausible the Fed lets the U.S. economy run hot before acting, the economic backdrop, in our view, warrants a Fed hike in March," said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management. "In a slow-growth, improving environment we think that's favorable for equities."
Banks, which investors bid sharply higher Wednesday on hopes that higher interest rates would help them earn more from lending, were the biggest losers Thursday.
Citizens Financial Group fell $1.54, or 3.9 percent, to $38.05, while Regions Financial slid 59 cents, or 3.7 percent, to $15.32. Zions Bancorporation gave up $1.57, or 3.4 percent, to $44.96.
The major stock indexes headed lower from the get-go early Thursday as investors considered results from several companies that reported disappointing earnings or forecasts.
Kroger shares slid 4.3 percent after the supermarket operator said business conditions in the first half of 2017 will remain difficult because of low food prices. The stock fell $1.39 to $30.67.
The price of U.S. crude fell $1.22, or 2.3 percent, to close at $52.61 a barrel in New York. Brent crude, used to price international oils, lost $1.28, or 2.3 percent, to close at $55.08 a barrel.
Business on 03/03/2017