U.S. stocks fell on concern that government reports this week may show inflation is accelerating, prompting the Federal Reserve to raise interest rates more quickly than some investors had forecast.
Shares of raw-material suppliers, banks and technology companies, all of which are hurt the most by slowing economic growth, led the drop.
A report yesterday showed higher retail sales, and economists predict the government will indicate today that so-called core consumer prices, excluding food and energy, gained for a sixth month.
"You're getting the impression that the rate hikes coming are not as benign as the market expects," said Russ Koesterich, equity strategist at Boston-based State Street Global Markets. "Any sign of higher-than-expected core inflation is going to stump the markets."
The Standard & Poor's 500-stock index fell 11.18, or 1 percent, to 1125.29. The Dow Jones industrial average declined 75.37, or 0.7 percent, to 10,334.73. The Nasdaq composite index dropped 29.88, or 1.5 percent, to 1969.99.
Alcoa, the world's top aluminum supplier, fell 48 cents, to $30.62. Intel, the biggest chipmaker, declined 65 cents, to $27.99. Citigroup, the No. 1 financial-services company, dropped 61 cents, to $46.74.
Shares of 99 Cents Only Stores, which has discount stores primarily in California, plunged $6.38, or 31 percent, to $14.10. The company cut its profit forecast for the second quarter because of disruptions in distribution amid increased competition from supermarkets. Other dollar-store chains also declined. Dollar General declined 38 cents, to $20.10, and Family Dollar Stores fell $1.17, to $32.68.
R.J. Reynolds Tobacco Holdings, which sells Camel and Winston brand cigarettes, rose $2.75, or 4.8 percent, to $59.59, for the S&P 500's biggest gain. The company said its proposed $3 billion acquisition of Brown & Williamson Tobacco should be approved without forcing it to divest businesses.
* The New York Stock Exchange composite index fell 91.76, to 6465.21; the American Stock Exchange index fell 9.92, to 1189.37; and the Russell 2000 index of smaller-company stocks fell 11.45, to 557.67.
* Declining issues outnumbered advancing ones by 5 to 1 on the NYSE, where trading volume rose to 1.18 billion shares, from 1.16 billion on Thursday. On the Nasdaq Stock Market, decliners outnumbered advancers by 3 to 1 and volume totaled 1.38 billion, up from 1.29 billion.
* The price of the Treasury's 10-year note fell $5.31 per $1,000 invested, and its yield rose to 4.87 percent, from 4.80 percent on Thursday.
* The dollar rose against the Japanese yen and the euro. In late New York trading, a dollar bought 111.25 yen, up from 109.32 late Thursday, and a euro bought $1.2055, down from $1.2107.
* Light, sweet crude oil for July delivery settled at $37.59, down 86 cents, on the New York Mercantile Exchange.
* Gold for current delivery fell to $383.60 a troy ounce, from $385.90 on Thursday, on the New York Mercantile Exchange's Commodity Exchange.