Major Averages Close Firmly Negative Amid Fed Worries

(RTTNews) - Stocks showed a notable move to the downside during trading on Tuesday after ending the previous session mixed. Renewed worries about the outlook for the Federal Reserve's stimulus program contributed to the weakness in the markets.

While most of the major sectors moved to the downside, gold stocks posted particularly steep losses on the day. Reflecting the weakness in the sector, the NYSE Arca Gold Bugs Index tumbled by 6 percent to its lowest closing level in almost a month.

The weakness among gold stocks came amid a notable decrease by the price of the precious metal, with gold for December delivery sliding $19.90 to $1,282.50 an ounce.

Significant weakness was also visible among airline stocks, as reflected by the 2.2 percent loss posted by the NYSE Arca Airline Index. Industry giant United Continental (UAL) helped to lead the sector lower, falling by 3.8 percent.

Housing stocks also saw considerable weakness on the day, with the Philadelphia Housing Sector Index dropping by 2.2 percent. PulteGroup (PHM) an MDC Holdings (MDC) turned in two of the sector's worst performances.

Biotechnology, healthcare provider and steel stocks also posted notable losses, reflecting broad based weakness in the markets.

The major averages moved roughly sideways going into the close, stuck firmly in negative territory. The Dow fell 93.39 points or 0.6 percent to 15,518.74, the Nasdaq slid 27.18 points or 0.7 percent to 3,665.77 and the S&P 500 dropped 9.77 points or 0.6 percent to 1,697.37.