NEW YORK (TheStreet) -- Stocks surrendered their gains by midafternoon on Tuesday as the majority of sectors slid into the red. Markets had been under pressure for most of the day as the U.S. dollar enjoyed a minor rebound and strong economic data supported a Federal Reserve rate hike sooner than later. 

The S&P 500 fell 0.33%, the Dow Jones Industrial Average tumbled 0.35% and the Nasdaq slid 0.05%.

The U.S. dollar rebounded from an earlier drop as higher inflation data gave the impression the Federal Reserve could move on rates sooner than expected. The greenback had fallen from 12-year highs last week after the Fed suggested a slower rate hike timeline.

West Texas Intermediate crude leveled off at $47.48 a barrel as the dollar gained. Crude prices were under pressure earlier on news that production in Saudi Arabia was close to an all-time high, pumping around 10 million barrels a day.

Also hurting oil prices, China's industrial activity continued to slow. In March, the factory sector in the world's second-largest economy fell to an 11-month low of 49.2, according to HSBC's flash China manufacturing index. Weakness prompted calls for fresh rounds of stimulus.

Consumer prices climbed 0.2% in February, reversing a 0.7% decline a month earlier, the U.S. Bureau of Labor Statistics said Monday. The increase in the headline number was the first in four months and came in as expected. Core CPI, excluding energy and food items, rose 0.2%, double what economists were expecting.

The inflation increase was seen as encouragement to the Fed to pull the trigger on a rate hike sooner than expected.

"The Fed has to essentially respond to these increased indications of strength in the domestic market without upsetting international markets too much," said David Louton, Professor of Finance at Bryant University, in a call. "The Fed is walking a very tight line currently, as we saw last week. Just a stray comment and all kinds of turmoil."

U.S. new home sales in February came in far higher than expected, despite the dampening effect of winter weather. Home sales climbed to their highest level since February 2008, up 7.8% month of month to an annual rate of 539,000. Economists had expected 460,000.

Netflix (NFLX) - Get Report spiked more than 3% after its price target was increased to $450 from $400 at Barclays. However, the firm remained wary maintaining an "'equal weight" rating and noting that margins remain depressed as the company expands aggressively and increases spending on content.

Facebook (FB) - Get Report shares were 1.4% higher after TheNew York Times said the social network is exploring ways to host media sites' content directly in its newsfeed. Amazon (AMZN) - Get Report shares were on watch after its Twitch subsidiary warned its users' accounts may have been hacked with personal information potentially leaked.

Monster Beverage (MNST) - Get Report climbed 1% after BMO Capital bumped up its price target to $150 from $140. Analysts said regulatory risks have lessened after a scientific report debunked some of the health concerns over caffeinated energy drinks.

Google (GOOGL) - Get Report shares were 2.4% higher after the company announced Morgan Stanley (MS) - Get Report Chief Financial Officer Ruth Porat would take over its top finance spot.

Chesapeake Energy (CHK) - Get Report jumped 1.1% after activist investor Carl Icahn upped his stake in the company to just under 11% from around 10% in December. Copper producer Freeport-McMoRan (FCX) - Get Report slid 0.7% after cutting its quarterly dividend by 84% based on falling commodity prices. 

Abiomed (ABMD) - Get Report surged nearly 18% after the Federal Drug Administration approved the biotech's Impella 2.5 System, a miniature blood pump device for the heart.

HD Supply Holdings (HDS) - Get Report gained 3.9% even after warning February sales were hit hard by winter weather. Several branch and distribution centers were closed over the second half of the month. Fourth-quarter earnings beat estimates.