Stocks fell on Tuesday as Wall Street sought stability after another down day for stocks.
The Dow Jones Industrial Average traded slid 320 points, or 1%. The S&P 500 fell 1.2%, and the Nasdaq Composite lost 1.3%.
The declines came after European Central Bank policymaker and Estonian central bank Governor Madis Muller said the central bank should discuss a 75-basis-point rate hike in September given exceptionally high inflation.
Energy prices eased on Tuesday, with West Texas Intermediate futures, the U.S. oil benchmark, falling more than 4.3%. Natural gas futures also dipped.
Wall Street is coming off a second-straight decline, with the Dow losing 184 points Monday. The S&P 500 fell 0.67% and the Nasdaq Composite sank 1.02%.
The market has given back some of its summer gains after recent comments by Federal Reserve officials made clear that the central bank aims to continue its rate hikes, even if they cause economic pain.
“Investors are coming to terms with the idea that the Fed is serious about curbing inflation, even as recent data suggests inflation is starting to decline,” said Rod von Lipsey, managing director at UBS Private Wealth Management.
“We believe the market’s summer rally was ephemeral and continue to recommend that investors remain selective and focus on defensive stock sectors like health care and dividend-paying stocks,” von Lipsey added.