NEW YORK: Wall Street’s main indexes fell on Tuesday after stronger-than-expected retail sales data stoked worries interest rates could stay higher for longer, while US big banks dropped on a report that Fitch could downgrade some lenders.

The Commerce Department’s report showed retail sales grew 0.7% last month against expectations of a 0.4% rise, suggesting the US economy remains strong. While traders’ bets of a pause on hikes by the Federal Reserve next month stayed intact at 89% after the data, analysts said investors were worried that rates could stay at current levels for longer than previously anticipated.

Also weighing on markets, JPMorgan Chase, Bank of America and Wells Fargo dropped between 1.8% and 2.4% after a report said ratings agency Fitch could downgrade multiple banks. “The story from Fitch about potential downgrades to multiple US banks (is) weighing on sentiment,” said Michael James, managing director of equity trading at Wedbush Securities. “You combine that with the retail sales figures this morning that we’re a little hotter than estimates, (it) furthers the potential higher for longer rates scenario from the Fed.” Shares of regional lenders PacWest Bancorp, Zions Bancorporation and Western Alliance Bank fell between 3% and 6.3% after the Federal Deposit Insurance Corp’s latest regulatory overhaul proposal. The S&P 500 banking index hit a one-month low, last down 2.2%, while the KBW regional banking index slipped 2.2%.

All major 11 S&P 500 sectors declined, with energy stocks leading losses on weaker crude prices.

Technology stocks fared better, thanks to a 2.2% rise in shares of Nvidia after UBS and Wells Fargo lifted their price targets on the stock.

US-listed shares of Chinese companies JD.Com, Alibaba Group and Bilibili slid between 2.2% and 4.6% after another round of disappointing economic data from China which prompted Beijing to cut key policy rates.

At 12:04 p.m. ET, the Dow Jones Industrial Average was down 256.98 points, or 0.73%, at 35,050.65, the S&P 500 was down 30.25 points, or 0.67%, at 4,459.47, and the Nasdaq Composite was down 71.07 points, or 0.52%, at 13,717.26. Among other stocks, General Motors fell 1.7% after Berkshire Hathaway cut its stake in the automaker. Warren Buffett’s Berkshire disclosed a new investment in homebuilder D.R. Horton and Lennar Corp, lifting their shares up 2.3% and 1.6%, respectively.