U.S. stocks closed lower Tuesday, weighed down by the energy sector. A drop in oil prices pressured energy companies, leading to a broad decline in their stock values and impacting the overall market performance.

Sector Performance

The energy sector was the biggest drag on the S&P 500, with major oil companies experiencing significant losses. Other sectors, including financials and industrials, also saw moderate declines.

Economic Data

Investors are closely watching upcoming economic data releases for further insights into the health of the U.S. economy. These data points will likely influence market sentiment and investment decisions.

Analyst Commentary

Analysts suggest that market volatility may persist in the near term, driven by uncertainty surrounding global economic growth and geopolitical events. They recommend a cautious approach to investing, emphasizing diversification and risk management.

U.S. stocks fell on Monday, weighed down by the energy sector as disappointing earnings reports from companies including Citigroup and Texas Instruments added to investor worries.

The energy sector was the biggest drag on the market, falling 2.5 percent as crude oil prices dropped below $63 a barrel. Shares of Exxon Mobil fell 2.4 percent, while Chevron dropped 2.8 percent.

Citigroup shares fell 4.5 percent after the company reported a larger-than-expected loss for the second quarter. Texas Instruments shares fell 7.6 percent after the chipmaker issued a weak revenue forecast.

The Dow Jones industrial average fell 104.14 points, or 1.2 percent, to 8,612.13. The Standard & Poor’s 500 Index fell 12.45 points, or 1.3 percent, to 923.70. The Nasdaq Composite Index fell 27.54 points, or 1.5 percent, to 1,830.25.

Investors are awaiting further economic data this week, including reports on housing and consumer confidence, for clues about the strength of the economic recovery.

“The market is in a wait-and-see mode,” said Peter Cardillo, chief market economist at Avalon Partners in New York. “We need to see more evidence that the economy is recovering before we can move higher.”