Big Tech stocks led declines as investors nervously looked ahead to the conclusion of the Federal Reserve's policy meeting Wednesday.
The markets were down for the second day in a row.
Richard Drew is an Associated Press photographer.
The S&P 500 lost 0.7%, while the Dow Jones Industrial Average fell around 100 points.
The stock market fell for a second day in a row, with investors continuing to dump high-priced tech stocks like Microsoft and Adobe.
The Labor Department reported that wholesale prices increased at the fastest pace on record in November, surging 9.6% from a year ago.
The Federal Reserve's two-day policy meeting kicks off on Tuesday, and investors will be watching for any updates.
The Fed Chair has suggested that the central bank may have to speed up the pace of its bond-buying program, which could result in higher interest rates.
The World Health Organization warned Tuesday that the new Covid variant of omicron is spreading faster than previous versions.
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Lindsey Bell, chief money and markets strategist at Ally Invest, says that mixed messages continue to reign as the year winds down. She says that the Fed is more focused on inflation readings for clues on pace and timing of its monetary unwind.
All three major stock indexes are close to their record highs. The S&P 500 was 1.6% below its peak before Tuesday, while the Dow was 2.5% below its record and the Nasdaq was 5% below.
There's a problem.
Despite a handful of major Wall Street firms upgrading the stock, shares of Apple fell again on Tuesday. Bank of America believes that Apple's plans for an augmented reality headset will lead to a major boost in revenue and its share price.
Bank of America is more bullish on Apple.
The stock market dropped more than 300 points ahead of the Fed meeting.
