Pessimism over the economic outlook extended into Tuesday's session, pulling down the S&P 500 by 2 percent to end just over 880. The pessimism isn't tied to this week's economic data, what little there has been, but to last week's that included the disappointing employment report and also disappointing consumer confidence data.
Oil fell another $2 to $62.50 amid rising talk that $55 to $50 may be where things settle, at least in the short term. Firmness in the dollar is also hurting oil and other commodities, which rallied through the second quarter on concern over dollar weakness and related inflation. The dollar index rose 0.4 percent to 80.69. Demand for long Treasuries firmed slightly as money moved out of the stock market. The 10-year yield fell 7 basis points to 3.44 percent