Stocks Ended Day Down Sharply

U.S. stocks ended down sharply on Tuesday amid Fed rate talk, disappointing earnings from several major
retailers. The Dow Jones Industrial Average shed 137.55 points, or 0.83%, to 16,374.31. The S&P 500 fell 12.25 points, or 0.65%, to 1,872.83. The Nasdaq Composite was down 28.92 points, or 0.70%, to 4,096.89.

If the U.S. economy improves as forecast, the Federal Reserve’s current taper pace may be too slow, said Philadelphia Federal Reserve President Charles Plosser on Tuesday. A strengthening U.S. economy may force the central bank to hike rates “sooner rather than later” to stay ahead of inflation, Plosser said.

General Motors Co. said it is recalling another 2.4 million vehicles, making it the auto maker’s 29th recall so far this year. As a result of the latest recalls, GM GM -0.03% expects to take $200 million more in recall-related charges in the second quarter, bringing the period’s total to $400 million.

Credit Suisse saw little immediate impact on Tuesday after it became the largest bank in decades to plead guilty to a U.S. criminal charge and will pay more than $2.5 billion in penalties for helping Americans evade taxes.

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