Traders work on the floor of the New York Stock Exchange
U.S. stocks extended their broad based rally Wednesday, as a positive outlook from the financial sector and a spate of strong earnings from airlines helped investors move past the previous day's bruising losses. REUTERS

Stocks sold off as disappointing results from Goldman Sachs (NYSE: GS) dragged down the financial services sector, as the indices endured their worst one-day price drop since November.

Goldman Sachs plunged 4.69 percent after it said earnings fell by 53 percent in the last quarter because of a slowdown in its investment banking business.

Similarly, banks Northern Trust (Nasdaq: NTRS) and State Street (NYSE: STT) dropped by 5.66 percent and 4.12 percent, respectively, after posting lower profits.

The Dow Jones Industrial Average fell 12.64 points, or 0.11 percent, to 11,825.29 The S&P 500 slipped 13.10 points, or 1.01 percent, to 1,281.92. The Nasdaq composite fell 40.49 points, or 1.46 percent, to 2,725.36.

News of a multi-billion trade deal between the U.S. and China apparently did not matter much to investors.

Oil futures fell to $90.87 per barrel, gold futures edged up.

Bonds climbed as the 10-year yield slipped to 3.34 percent.

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