The Dow Jones industrial average closed down 129.95 points, or 0.97 percent, at 13,295.01. The Standard & Poor's 500 Index fell 16.12 points, 0.87 percent, to 1,493.00, while the NASDAQ Composite Index closed 1.07 percent lower at 2,549.77, a 22.38-point drop.

On the New York Stock Exchange Tuesday, 455 stocks gained and 2,891 declined, on volume of 3.06 billion shares traded.

The 10-year Treasury note was down $6.875 for every $1,000 invested, to yield 5.263 percent.

The dollar ended the day mixed. The euro was at $1.3309 Tuesday from $1.3355 Monday, while the dollar was at 121.72 yen from 121.79.