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."
All major world markets were in the red Tuesday. Germany's DAX was down 1.7% as imports fell the most in almost two years, down 3.1% in October and far worse than an estimated 1.5% decline. The eurozone's largest economy has been suffering slowing growth as the rest of the region struggles with deflationary concerns and high unemployment.
China's Shanghai Composite saw its biggest one-day fall in five years, tanking 5.4%, after Chinese regulators tightened lending rules. The index remains around 40% higher for the year. Meanwhile, China's Central Economic Work Conference is meeting to determine an official 2015 GDP outlook. World Bank economists are pushing for a growth target forecast of 7%, the lowest level in a decade, so officials can focus on reform plans.
Citigroup (C) warned Tuesday of a $3.5 billion charge for its fourth quarter, a result of charges related to Libor and foreign exchange investigations and other restructuring. Shares were down 2.6%, caught up in a selloff among bank stocks including Bank of America (BAC) , Morgan Stanley (MS) and Goldman Sachs (GS) .
H&R Block (HRB) dropped 6.2% after the tax preparation firm reported a quarterly loss of 45 cents a share, 3 cents wider than expected. AutoZone (AZO) shares were up 4% after first-quarter revenue climbed more than 8% and earnings beat forecasts.
T-Mobile (TMUS) was down 5.5% after announcing a convertible stock offering of 17.4 million shares. The company said proceeds could be used to purchase additional spectrum in future auctions.
Conn's (CONN) tanked 39.5% as a third-quarter loss of 8 cents a share came in far worse than estimated profits of 68 cents. The company said the loss was due to delinquent accounts at its consumer credit-financing unit.
Abercrombie & Fitch (ANF) spiked 6.2% on news long-time CEO Michael Jefferies would step down, effective immediately. The CEO's job had been shaky as plummeting sales and profits caused growing discord among investors
-- Written by Keris Alison Lahiff in New York.