NEW YORK, May 2 (Xinhua) — U.S. stocks dropped on Tuesday as prospect of U.S. debt default and weak labor market indicator dented market sentiment.

The Dow Jones Industrial Average fell 367.17 points, or 1.08 percent, to 33,684.53. The S&P 500 sank 48.29 points, or 1.16 percent, to 4,119.58. The Nasdaq Composite Index shed 132.09 points, or 1.08 percent, to 12,080.51.

Ten of the 11 primary S&P 500 sectors ended in red, with energy and financials sectors leading the laggards down 4.28 percent and 2.3 percent, respectively. Meanwhile, the consumer discretionary sector bucked the trend, rising 0.16 percent.

The United States could not be able to satisfy all of the government’s obligations as early as June 1, if the U.S. Congress doesn’t raise or suspend the debt limit before that time, warned U.S. Treasury Secretary Janet Yellen on Monday.

However, the White House said U.S. President Joe Biden would not negotiate over the debt ceiling during his meeting with top congressional leaders on May 9 and would hold talks on the start of “a separate budget process.”

Continuous cooling down of the U.S. labor market added concerns over anticipated recession in the U.S. economy.

U.S. job openings declined to 9.590 million in March, down from a revised reading of 9.974 million in February, according to the Job Openings and Labor Turnover Survey (JOLTS) issued by the U.S. Bureau of Labor Statistics on Tuesday.

The labor market is clearly cooling as employers start to pull back job offers and as layoffs rise, said Edward Moya, senior market analyst at OANDA, a supplier of online multi-asset trading services.

Moreover, JPMorgan’s acquisition of First Republic Bank from the Federal Deposit Insurance Corporation on Monday failed to quell concerns over the U.S. banking sector.

Stocks are struggling as investors watch a key part of the economy enter freefall, added Moya, citing the dive of multiple regional banks’ shares.

The S&P 500 Index declined amid a sharp sell-off in the shares of regional banks and traders are worried that more banks would fall after First Republic Bank, noted Vladimir Zernov, analyst with market information supplier FX Empire.

The shares of PacWest Bancorp, Western Alliance Bancorp., Zions Bancorp N.A. and Comerica Inc. shed 27.78 percent, 15.12 percent, 10.81 percent, and 12.42 percent on Tuesday, respectively.