The market had rallied early Monday on hopes that trade tensions were easing between the USA and China. KeyCorp rose 1.5 percent.
The S&P 500 rose by 0.1% and closed at 2,730.13 points, with energy, health and resource makers increasing most.
Small-company stocks held up better than the rest of the market.
Prices shot higher after the Commerce Department reported April U.S. retail sales rose 0.3% and revised March's gain to 0.8%, and the New York Empire State manufacturing index came in well ahead of expectations.
The Dow Jones Industrial Average .DJI fell 193 points, or 0.78 percent, to 24,706.41, the S&P 500 .SPX lost 18.68 points, or 0.68 percent, to 2,711.45 and the Nasdaq Composite .IXIC dropped 59.69 points, or 0.81 percent, to 7,351.63.
In Asia, shares declined on Wednesday in morning session after North Korea pulled out of high-level talks with Seoul and as US Treasury yields rose to the highest level in seven years overnight.
USA companies that could benefit from a rescue of the struggling Chinese telecommunications company ZTE rallied Monday.
President Donald Trump tweeted over the weekend that the USA could ease sanctions on ZTE. The Dow Jones Small-Cap Growth TSM Index closed at 9,941.29 for a loss of -8.02 points or -0.08%.
The Dow lost 183 points, or 0.7 percent, to 24,715.
Banks bucked the downward trend Tuesday and rose along with bond yields. The Nasdaq climbed 32 points, or 0.4 percent, to 7,435.
USA companies that would stand to benefit from an effort to rescue ZTE, a Chinese technology company hurt by US tariffs, rose in early trading Monday.
Google's parent company, Alphabet, was up 1 percent in early trading, and Exxon Mobil was also up 1 percent.
The S&P 500 posted 10 new 52-week highs and seven new lows; the Nasdaq Composite recorded 82 new highs and 51 new lows.