Stocks fell on Tuesday, with the Nasdaq losing 1 percent, after a report showed consumer confidence fell in August, heightening concern about the fallout from the housing slump.
A brokerage's downgrades of major U.S. investment banks and renewed credit concerns weighed on shares of financial services companies, making the sector the biggest drag on the market.
The Dow Jones industrial average was down 82.10 points, or 0.62 percent, at 13,240.03. The Standard & Poor's 500 Index was down 11.95 points, or 0.81 percent, at 1,454.84. The Nasdaq Composite Index was down 25 points, or 1 percent, at 2,534.