The Dow Jones Industrial Average fell 438.09 points, or 1.29%, to 33,611.37; the S&P 500 lost 73.1 points, or 1.70%, to 4,223.02; and the Nasdaq Composite dropped 347.48 points, or 2.67%, to 12,657.37.
Even if the Fed raises rates, James Glassman of JP Morgan does not see a big fall in the equities market, instead expects a short-term volatility in the market.
The low volatility and protection from inflation that infrastructure offers as an asset class are luring investors who are wary of the macro-economic risks that have put the brakes on a bull equities market.
US stocks in early trading on Tuesday after Chinese economic data drew investors into an equities market that has been through six weeks of sharp declines.