Stocks extended losses on Tuesday after minutes from the most recent meeting of the Federal Reserve's policy-setting committee showed the Fed appeared less keen to launch additional stimulus measures.
The minutes from the March meeting noted a couple of members thought more stimulus might be needed if the economy loses momentum versus the January meeting, when minutes cited a few members as seeing a possible need for additional easing before long.
No more of that artificial sweetener that the markets have become so accustomed to getting a regular dose of, said Peter Kenny, managing director of Knight Capital in Jersey City, New Jersey, in reference to the Fed's stimulus measures.
At this stage of the game, people realize the markets are going to have to do the work now.
Earlier, data from the Commerce Department data reinforced the view the domestic economy was slowly improving as new orders for U.S. factory goods rebounded in February, although the increase was short of expectations.
The Dow Jones industrial average <.DJI> dropped 111.48 points, or 0.84 percent, to 13,153.01. The Standard & Poor's 500 Index <.SPX> lost 12.17 points, or 0.86 percent, to 1,406.87. The Nasdaq Composite Index <.IXIC> fell 15.57 points, or 0.50 percent, to 3,104.13.
Financials were among the worst performers. Morgan Stanley
The S&P financial sector index <.GSPF> dropped 1.3 percent.
U.S. auto sales jumped more than 15 percent in March, wrapping up the best quarter for U.S. vehicle sales since 2008.
But shares of General Motors Co
(Reporting by Chuck Mikolajczak; Editing by Jeffrey Benkoe and Jan Paschal)