Selloff Intensifying

The S&P 500 fell on Tuesday to its lowest level in months after the latest home sales and consumer confidence reports stoked concern over the state of the U.S. economy.

The Dow Jones Industrials turfed 327.75 points, or 1%, to pause for lunch Tuesday at 33,679.13.

The S&P 500 index dumped 53.63 points, or 1.2%, to 4,283.81, dipping below 4,300 for the first time since June 9.

The NASDAQ index tumbled 174.60 points, or 1.3%, to 13,096.72.

JPMorgan Chase CEO Jamie Dimon warned interest rates may need to rise further to tamp down inflation, comments that added to bearish sentiment Tuesday. Bank stocks declined, as Wells Fargo shares dropped more than 1%, while Morgan Stanley fell nearly 1%.

August new home sales missed expectations. Homes under contract totaled 675,000 for the month, down 8.7% from July, according to the Commerce Department. Economists polled by Dow Jones anticipated a total of 695,000, which would have represented a 2.7% fall from unrevised July totals.

The Conference Board’s consumer confidence index fell to 103 in September, down from 108.7 in August. Economists were anticipating 105.5, according to consensus estimates from Dow Jones. The expectations index tumbled to 73.7, below the level that observers associate with recessions.

Investors this week are also grappling with negotiations in Washington, as lawmakers hope to avert a government shutdown that could take place as early as Oct. 1 if Congress doesn’t agree on a spending bill.

Still, upcoming seasonal market tumult could present a window for investors. Though October is known as the “jinx month” because of the 1929 and 1987 crashes, it also has a reputation as a “bear killer,” according to the “Stock Trader’s Almanac.”

Prices for the 10-year Treasury fell back, raising yields to Monday’s 4.54%. Treasury prices and yields move in opposite directions.

Oil prices gained 69 cents to $90.37 U.S. a barrel.

Gold prices cratered $14.80 to $1,921.80.