U.S. stocks closed sharply lower Tuesday, with the S&P 500 and Dow industrials posting their biggest one-day losses since Oct. 11, 2016. Investors turned risk averse after the first hour of trading, as financials and industrials sold off sharply. The financial sector dropped 3%, while industrials fell nearly 2%. Shares of Bank of America Corp dropped 5.8%. The S&P 500 declined 29.45 points, or 1.2%, to 2,344.02, with 10 of the 11 main sectors closing lower. The Nasdaq Composite , which set an intraday record shortly after the open, closed down 107.70 points, or 1.8%, at 5,793.83. The Dow Jones Industrial Average dropped 237.85 points or 1.1%, to 20,668.01. The Russell 2000 index of small stocks fell more than 2.5% to close at 1,349, erasing year-to-date gains.