MARKET SNAPSHOT: U.S. Stocks Fall A Little Further After Tuesday Beatdown

By Victor Reklaitis and Barbara Kollmeyer, MarketWatch

Goldman analysts: It has been a period of 'indigestion'

NEW YORK (MarketWatch)--U.S. stocks closed slightly lower Wednesday, building a little on losses from the previous day, when a dollar surge and growing expectations of a rate hike by the Federal Reserve helped trigger the Dow's biggest point drop in five months.

The S&P 500 (SPX) finished lower by 3.92 points, or 0.2%, at 2,040.2 after switching between small gains and losses throughout the session. The

The Dow Jones Industrial Average (DJI) closed down by 27.55 points, or 0.2%, to 17,635.39, while the Nasdaq Composite (RIXF) lost 9.85 points, or 0.2%, to end at 4,849.94. The S&P 500 and Dow closed at their lowest levels since Feb. 2, while the Nasdaq ended at its lowest level since Feb. 11.

"The topic of discussion remains focused on the Fed's start, pace and duration of a new rate-tightening program," said Sam Stovall, equity strategist for S&P Capital IQ, in a note Wednesday. He said his shop still expects stocks will finish up for the year, but in the near term, equities could see consolidation--meaning a drop or sideways action.

Some analysts suggested the market is due to calm down.

In a note, Goldman Sachs analysts Noah Weisberger and Aleksandar Timcenko said "winds have shifted with a looming U.S. tightening as the current source of market disquiet." But they think the tightening "will ultimately prove benign, though perhaps after some period of 'indigestion."

See: Here's what stocks do in the months just before a rate hike (http://www.marketwatch.com/story/heres-what-stocks-do-in-the-months-just-before-a-rate-hike-2015-03-06).

Tuesday's steep losses (http://www.marketwatch.com/story/us-stocks-futures-drop-as-dollar-surges-apple-in-focus-2015-03-10) erased year-to-date gains for the S&P 500 and the Dow industrials. The two stock benchmarks are both down about 1% for the year as of Wednesday's close, while the tech-heavy Nasdaq is up 2.4%.

Wednesday's muted action came as the dollar continued to push higher against rivals, with the euro (EURUSD) trading at a nearly 12-year low.

Read more: The blistering pace of the dollar's rally is rattling markets (http://www.marketwatch.com/story/the-blistering-pace-of-dollars-rally-is-rattling-markets-2015-03-10)

Individual movers & shakers: Tyson Foods Inc.(TSN) was the biggest loser among S&P 500 components, closing down 5.6%. Poultry producers took it on the chin (http://www.marketwatch.com/story/poultry-producers-fall-with-avian-flu-discoveries-2015-03-11) after the U.S. Department of Agriculture confirmed that turkey flocks in Missouri and Arkansas have been infected with avian flu.

SanDisk Corp.(SNDK) was one of the S&P 500's biggest gainers, finishing up by 3.2% after Goldman Sachs analysts added the stock to their so-called conviction buy list.

Read more about Wednesday's jumpiest stocks in Movers & Shakers ()

Other markets: Gold (GCJ5) fell further (http://www.marketwatch.com/story/gold-bounces-back-from-november-lows-2015-03-11) as the dollar (DXY)charged ahead (http://www.marketwatch.com/story/dollar-up-after-losing-a-chunk-of-gains-overnight-2015-03-11). Oil prices (http://www.marketwatch.com/story/oil-futures-rebound-ahead-of-us-oil-stockpile-data-2015-03-11)(CLJ5) also settled lower.

European stocks climbed (http://www.marketwatch.com/story/european-stocks-rally-as-weaker-euro-fuels-exporters-2015-03-11), aided by the falling euro as the European Central Bank's bond-buying program continued. In Asia, Hong Kong equities dropped to a two-month low (http://www.marketwatch.com/story/hong-kong-stocks-fall-to-two-month-low-on-weak-china-data-2015-03-11) after more signs of weakness in the Chinese economy, though Japanese stocks rebounded.

Anora Mahmudova in New York contributed to this article.

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