U.S. stocks fell Tuesday as investors digest new readings on October's trade balance and await results from the Georgia Senate runoff election.

The S&P 500 (^GSPC) sank 1.5%, during midday trading, while the Dow Jones Industrial Average (^DJI) down 1.1%, or more than 370 points. The technology-heavy Nasdaq Composite (^IXIC) fell 1.9%.

Wall Street looked to recover from a rout on Monday, as stocks sunk while investors digested the first releases in a week full of economic data. The S&P is set for its sixth down day in the last seven trading sessions, according to Bespoke Investment Group. Data readings pointing to continued resilience in different pockets of the economy have prompted intense market fixation around the risk that the Federal Reserve will continue to raise interest rates throughout the next year.

Fed officials, including Chair Jerome Powell, have largely suggested the central bank will downshift to a half-point move at their meeting next week after four consecutive 75 basis-point increases. But the employment report on Friday showed strong job gains and robust wage growth, the opposite of what the Federal Reserve would like to see in its battle against inflation.

A smaller increase would indicate a new phase for the central bank’s tightening campaign, but elevated wage pressures could lead to more officials raising their benchmark federal funds above 5% next year, which is currently anticipated by Wall Street.

“In light of the various releases, expectations of the Fed terminal rate priced for May 2023 moved up by 9.5 basis points on the day to 5.01%, crossing the 5% threshold again,” Jim Reid and colleagues at Deutsche Bank wrote in an early morning note Tuesday.

“That’s a noticeable shift from where it was just before Friday’s jobs report, when it hit a low of 4.83%, and means that most of the moves lower after Chair Powell’s Wednesday speech have now reversed,” he added.

Officials will get another read on inflation on December 13, the first day of the Fed's two-day policy meeting, when the Labor Department releases the Consumer Price Index for November.