Mr. Andres expects stocks to fall further amid a global slowdown, low commodities prices and after years of quantitative easing in the US, which he said artificially boosted stock prices.
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The Dow Jones Industrial Average dropped 189 points, or 1 per cent, to 16432 at the closing bell. Futures on the Nasdaq 100 Index slid 1.3 percent.
Declining issues outnumbered advancing ones on the NYSE by 2,075 to 991, for a 2.09-to-1 ratio on the downside; on the Nasdaq, 1,924 issues fell and 858 advanced for a 2.24-to-1 ratio favouring decliners.
The S&P 500 .spx is down 6 percent for the year, while the Nasdaq composite .ixic has shed more than 10 percent.
Economic data due on Wednesday includes a report on new home sales, which are expected to have fallen 4.4 percent in January.
It’s not uncommon to see stocks give up some of their gains after a strong multi-day like the one that happened last week, but traders say the mood in the market is still cautious.
Shares in Dow Jones member JP Morgan fell 4.3% after the bank said it would set aside an extra $500m to cover losses from loans to oil and gas companies.
The S&P financial sector has been the worst performer among the 10 major sectors this year as banks brace for a wave of potential defaults by energy companies. Energy shares tumbled 3.2% on Tuesday, leading declines among S&P sectors.
Low crude prices have also raised concerns that some U.S. shale oil producers could be forced into bankruptcy. The S&P 500 lost 9.25 points, or 0.48 percent, to 1,936.25. Lowe’s was down 3.7 per cent at $66.15 despite the home improvement chain’s better-than-expected results. South Korea’s Kospi edged 0.1 percent lower to end at 1,912.53, and Hong Kong’s Hang Seng fell 1.1 percent to 19,192.45.
Crude oil extended its declines after Saudi Arabia’s oil minister dismissed the possibility of a production cut.
The most active gold contract for April delivery added $12.5, or 1.03 percent, to settle at $1,222.60 per ounce.
Economic news: The Conference Board said its consumer-confidence index fell in February to its lowest level in seven months (http://www.marketwatch.com/story/consumer-confidence-falls-to-seven-month-low-2016-02-23). In corporate news, facing the likelihood for “insurmountable obstacles” from USA regulators, as well as valuation issues, United Technologies (UTX) rebuffed a $108 per share buyout offer from Honeywell (HON), sending shares of Dow component stock United Technologies almost 2% lower.
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PAYING DOWN DEBT: Chesapeake Energy rose 28 cents, or 16 percent, to $2.56.
