By Jennifer Coogan
Financial services stocks fell sharply on concern that a slowdown in the services sector, which accounts for about 80 percent of U.S. economic activity, would crimp demand for loans and capital investment.
Tuesday marks the second day of decline for the market following last week's rally, the biggest five-day gain in nearly five years.
The Dow Jones industrial average <.DJI> was down 306.30 points, or 2.42 percent, at 12,328.86. The Standard & Poor's 500 Index <.SPX> was down 35.67 points, or 2.58 percent, at 1,345.15. The Nasdaq Composite Index <.IXIC> was down 58.02 points, or 2.43 percent, at 2,324.83.
Investment bank Goldman Sachs & Co
Exxon was down 2.8 percent at $83, making it the top-weighted drag on the S&P.
Shares of business software maker Oracle Corp
The U.S. services sector data followed figures showing services growth in the euro zone decelerated sharply in January, raising fears of a spillover from the United States.
(Additional reporting by Kristina Cooke; Editing by Leslie Adler)
