Among the S&P industry groups, the rate-sensitive real estate space ended at the bottom of the standings with a 1.7% loss, including a 3.8% rout in the iShares U.S. Home Construction ETF. The S&P 500 closed at 2,711.45 for a loss of -18.68 points or -0.68%.
The Dow is down 124.76 points, or 0.5 percent.
Home Depot dropped 1.4 percent to $187.98 after the home-improvement retailer reported weaker-than-expected sales, partly because of inclement weather, and said the second quarter got off to a slow start.
France's CAC 40 inched up 0.2 percent to 5,548, while Britain's FTSE 100 rose by the same rate to 7,726.
Technology and health care sector companies took some of the worst losses. The blue-chip Dow Jones grew by 68.24 points, with UnitedHealth and Walmart being the best-performing stocks in the index.
The selling on Wall Street was accompanied by a rise in bond yields, with the 10-year Treasury yield topping 3.07%. Treasuries were a key factor for the market Tuesday as investors watched 10-year Treasury yields climb to 3.08%.
ENERGY: Benchmark U.S. crude oil gained 59 cents to $71.55 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude, used to price global oil, added shed 8 cents to $78.35 a barrel in London.
CURRENCIES: The dollar rose to 109.97 yen from 109.53 yen late Monday.
The greenback's gains weighed on precious metals prices. Silver dropped 38 cents, or 2.3 percent, to $16.27 an ounce.
The Russell 2000 is up 64.83 points, or 4.2 percent. NXP's share price rose by 11.9% and Qualcomm added 2.7% to its value. Natural gas dipped a penny to $2.84 per 1,000 cubic feet. In China, the Shanghai Composite Index fell 0.43%. France's CAC 40 inched up 0.2 percent. In Japan, the Topix index was off 0.2%. Australia's S&P/ASX 200 lost 0.6 percent.
NORTH KOREA: North Korea canceled a high-level meeting with South Korea, threatening to scrap a historic summit next month between President Donald Trump and North Korean leader Kim Jong Un over military exercises between Seoul and Washington that Pyongyang has long claimed are rehearsals for invasion. Hong Kong's Hang Seng fell 0.8%.