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Stocks wilted Tuesday, fueled by investors' fears the financial sector's woes will spread to the overall economy.

Retreating oil prices could not keep the stock market from declining for a second straight day.

The Dow fell 65.84 to 13,248.73, while the S&P 500 lost 9.63 to 1,462.79 and the Nasdaq dropped 17.30 to 2,619.83.

Crude oil fell $1.10 to $88.21 a barrel on the New York Mercantile Exchange amid speculation that OPEC will raise production at a meeting today and after a U.S. intelligence report concluded Iran halted its nuclear weapons development program in 2003.

Meantime, JPMorgan Chase lowered its profit forecasts for some of Wall Street's biggest players: Goldman Sachs, Lehman Brothers, Merrill Lynch and Morgan Stanley.

JPMorgan warned that the firms' risk management might hurt overall valuations.

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