US markets fell on Tuesday due to big drop in telecom stocks and weak housing starts data that overshadowed better-than-expected earnings from Walmart and Home Depot.
 
So, the Dow Jones Industrial Average fell 267 points, or 0.8%, to 34,061, the S&P 500 lost 35 points, or 0.9%, to 4,128 and the Nasdaq Composite dropped 75 points, or 0.6%, to 13,304.
 
The three main indices opened higher after Walmart raised its full-year earnings forecast and Home Depot reported quarterly same-store sales above estimates.
 
Eight of 11 major S&P sectors ended the session in the red, with Energy and Industrials having largest percentage decline.
 
AT&T shed 5.8%, among the biggest percentage decliners in the S&P 500, after the telecoms firm said it would cut its dividend payout ratio as a result of its 43 billion dollars media asset deal with Discovery Inc.
 
In economic news, data showed US homebuilding fell more than expected in April.
 
Wall Street has been volatile in recent days, with investors worried that an overheating economy could prompt the Federal Reserve to rein in its monetary support following a spike in volatility last week after strong inflation readings.