The Dow Jones Industrial Average fell 222.84 points, or 0.67 percent, to 32,990.12. The S&P 500 decreased 26.09 points, or 0.63 percent, to 4,132.15. The Nasdaq Composite Index lost 49.74 points, or 0.41 percent, to 12,081.39.
Nine of the 11 primary S&P 500 sectors ended in red, with energy and materials down 1.65 percent and 1.6 percent, respectively, leading the laggards. Consumer discretionary and communication services rose 0.76 percent and 0.41 percent, respectively, the only two gaining groups.
Surging inflation and aggressive central bank tightening remain a focus on Wall Street.
Federal Reserve Governor Christopher Waller on Monday called for "several" half-point rate hikes, adding he would support hikes that exceed the "neutral" level considered neither supportive nor restrictive for growth.
At the May 3-4 meeting, the Fed raised its benchmark interest rate by a half percentage point to a target range of 0.75 to 1 percent, marking the sharpest rate hike since 2000, in an effort to battle the hottest price pressures in 40 years.
U.S. financial markets were closed on Monday in observance of the Memorial Day.
For the week ending Friday, Wall Street enjoyed a relief rally, which saw all the three major indexes jump more than 6 percent.
In May, the Dow and the S&P 500 each eked out a gain of less than 0.1 percent, while the Nasdaq fell 2.1 percent.
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