NEW YORK (TheStreet) -- U.S. stocks joined a global market selloff Tuesday as crude oil tried to claw back from five-year lows, German data added to growing unease over the country's economic strength, and Chinese officials convened to determine future GDP growth.
The S&P 500 slid 1.11% after the index suffered its biggest one-day drop since Oct. 22 on Monday. The Dow Jones Industrial Average tumbled 1.1% and the Nasdaq fell 1.13%.
"It's a sign of a tired rally," said Chris Gaffney, senior market strategist for EverBank Wealth Management, in a call. "We're seeing investors take some of their cards off the table, pull some of their profits as we approach year-end and book those gains not wanting to risk an end-of-year selloff."
Crude oil prices were struggling to remain above $63 a barrel after West Texas Intermediate crude plummeted more than 4% on Monday. Crude has seen its steepest drop since 2008 over the last six months, down around 40% from a mid-summer peak. Investment firms including Morgan Stanley and Bank of America cut oil forecasts after OPEC said it would not restrain production to address oversupply.
Though markets slid on cratering oil prices, Charles Schwab's Liz Ann Sonders argued the effect on U.S. economic health remained minimal. "Consumer spending represents 68% of the U.S. economy. Oil and gas capex represents about 1% of U.S. GDP and less than 9% of U.S. total capex," Sonders said at a media event last week. "The benefit of lower energy prices to the consumer and many businesses greatly outweighs the significant hit to energy companies."