Stock Drops Flout So-Called Rebound

Stocks closed in the red for the third consecutive session Tuesday, down 2 percent—an indicator that investors remain skeptical of an economic rebound. The Dow Jones Industrial Average fell 185 points; the financial sector suffered the most, with national and regional banks and insurers leading the selloff. The news highlights how fundamental the financial sector is to investor confidence, as the downturn continued in spite of positive economic news from President Obama himself and the manufacturing industry. The New York Times notes that financial stocks were at the center of a summertime boom, though there has been consistent concern that the market has become "too expensive."