The 30-stock index plunged 231.86 points at 37,361.12.
The S&P 500 sank 17.85 points to 4,765.98.
The NASDAQ fell 28.41 points to 14,944.35.
Boeing shares tumbled about 7.9% after Wells Fargo downgraded the company to equal weight from overweight, amid ongoing troubles with its 737 Max 9 model. Meanwhile, AMD shares jumped 8.3% following upbeat analyst commentary on semiconductor demand. The chipmaker, which is trying to catch Nvidia in the artificial intelligence race, rose to a new 52-week high, and is scheduled to report its quarterly results on Jan. 30.
Several major banks released their quarterly earnings Tuesday morning. Goldman Sachs reported better-than-expected profit and revenue, while Morgan Stanley posted a revenue beat in the fourth quarter. Shares of Goldman Sachs inched up 0.7%, while Morgan Stanley declined more than 4%.
Roughly 30 S&P 500 companies have reported calendar fourth-quarter results thus far. Of those, 78% have beaten earnings expectations.
Investors are also looking ahead to December retail sales data out Wednesday, which could fuel recessionary fears and concerns about economic growth if U.S. consumer spending sees a cooldown.
Wall Street is coming off its 10th positive week in 11. The Dow and S&P 500 gained 0.3% and 1.8%, respectively, last week. The Nasdaq jumped 3% for its biggest weekly gain since November.
Prices for the 10-year Treasury slipped, raising yields to 4.07% from Friday’s 3.94%. Treasury prices and yields move in opposite directions.
Oil prices subtracted 79 cents to $71.89 U.S. a barrel.
Gold prices dipped $19.90 to $2,031.70.
Selloff Continues, Indices Punished