U.S. stocks closed lower on Tuesday, weighed down by weakness in financial shares. Investors were also digesting a mixed bag of economic data and keeping a close eye on developments in the bond market.

Key Market Indicators

• The Dow Jones Industrial Average fell 0.2%, closing at 15,412.
• The S&P 500 declined 0.3% to 1,685.
• The Nasdaq Composite Index dropped 0.4% to 3,669.

Financial Sector Drag

Financial stocks were among the biggest decliners, with the KBW Bank Index falling 1.1%. Concerns about the outlook for interest rates and the potential impact on bank earnings weighed on the sector.

Economic Data

Economic data released on Tuesday painted a mixed picture. Retail sales rose less than expected in July, while a separate report showed an increase in business inventories.

Analyst Commentary

“The market is struggling to find direction,” said John Smith, a portfolio manager at ABC Investments. “Investors are concerned about the pace of economic growth and the potential for the Federal Reserve to begin tapering its asset purchases.”

Looking Ahead

Investors will be closely watching upcoming economic data releases, including the consumer price index and housing market reports. They will also be paying attention to any comments from Federal Reserve officials regarding the outlook for monetary policy.