Stocks sharply cut losses on Tuesday as shares of basic materials and retail-related companies advanced.

The Dow Jones industrial average <.DJI> dropped 112.53 points, or 1.12 percent, to 9,954.04. The Standard & Poor's 500 Index <.SPX> fell 9.46 points, or 0.88 percent, to 1,064.19. The Nasdaq Composite Index <.IXIC> lost 22.70 points, or 1.03 percent, to 2,190.85.

Indexes opened down nearly 3 percent.

(Reporting by Rodrigo Campos; Editing by Jan Paschal)