U.S. stocks declined Tuesday as financial shares took a beating amid ongoing concerns about the health of the sector.

The Dow Jones Industrial Average fell 128.13 points, or 1.11 percent, to close at 11,447.00. The Standard & Poor’s 500 index dropped 13.90 points, or 1.09 percent, to 1,266.67, and the Nasdaq composite index shed 33.55 points, or 1.42 percent, to 2,324.36.

Financial stocks were among the worst performers, with Citigroup, Bank of America, and JP Morgan Chase all seeing significant declines.

Analysts cited worries about further credit losses and the potential for more bank failures as key factors driving the sell-off. The uncertainty surrounding the government’s response to the crisis also contributed to the market’s unease.

Adding to the negative sentiment were disappointing economic reports. A report on construction spending showed a surprise drop, while factory orders also came in weaker than expected.

Energy prices also played a role, as crude oil futures rose, stoking inflation fears. The combination of economic worries and financial sector jitters created a perfect storm for the market.

While some bargain hunters emerged late in the session, they were not enough to offset the overall negative trend. The market’s focus remains squarely on the financial sector and the broader economic outlook.