Wall Street sinks on rate worries as health care stocks and Tesla tumble

U.S. stocks are sinking Tuesday, as worries about interest rates staying high continue to hit Wall Street.

The S&P 500 was 0.9% lower in afternoon trading and on track for a second drop after setting an all-time high to close last week.

The Dow Jones Industrial Average also pulled further from its record and was down 481 points, or 1.2%. The Nasdaq composite was 1.2% lower, as of 1:55 p.m. ET.

Health insurance companies led the market lower on worries about their upcoming profits after the U.S. government announced lower-than-expected rates for Medicare Advantage.

Humana tumbled 14.2%.

Tesla, meanwhile, dropped 5% after delivering far fewer vehicles for the start of 2024 than analysts expected.