BEIJING, June 14 (Xinhuanet)-- U.S. Stocks dropped on Tuesday amid persistent worries about rising interest rates and slower economic growth after the latest warnings on inflation from Federal Reserve officials.

    On Tuesday the Dow Jones Industrial Average fell 86.44 points, or 0.80 percent, to 10,706.14, sliding into negative territory for the year. It was the seventh decline by the blue-chip average in the past eight trading sessions. The Dow has fallen 8 percent since closing within 80 points of its all-time high on May 10.

    The Standard & Poor's 500 Index was down 12.71 points, or 1.03 percent, at 1,223.69. The Nasdaq Composite Index was down 18.85 points, or 0.90 percent, at 2,072.47.

    The Nasdaq finished down for the eighth day in a row, matching a losing streak it registered in May which was its longest in 12 years.

    Stocks fell in volatile trading on Tuesday as inflation data added to concerns that the Federal Reserve would raise interest rates for the 17th consecutive time in June.

    "It is becoming more widely accepted that the Fed is likely to raise rates at its June meeting and that is being slowly priced into the market," said Charles Lieberman, chief investment officer of Advisors Capital Management in Paramus, New Jersey.

    "Fears of Federal Reserve over-reaction in its fight on inflation continue to haunt Wall Street and other global equity markets," said Fred Dickson, chief market strategist at DA Davidson.

    Investors searching for undervalued shares after weeks of selling helped to offset the concerns, but many were hesitant to make bets before the Consumer Price Index report on Wednesday. Enditem

    (Agencies)