US stocks fell on Tuesday, led by declines in retailers, insurers and transportation companies, a day after Hurricane Katrina hit the Gulf Coast, causing oil prices to soar to a new record.
The market was also jolted by minutes of the rate-setting meeting of the Federal Reserve on August 9, which showed most participants viewed US inflation as having accelerated and high energy prices as a "significant drag" on the economy.
Economic forecasters said losses from Katrina could range as high as $26 billion, slightly less than the $30 billion initially feared.
The Dow Jones industrial average was down 105.72 points, or 1.01 percent, at 10,357.33. The Standard & Poor's 500 Index was down 9.92 points, or 0.82 percent, at 1,202.36. The technology-laced Nasdaq Composite Index was down 17.40 points, or 0.81 percent, at 2,120.25.