S&P 500 has biggest three-day drop since September

The S&P 500 had its biggest three-day drop since September, led by losses in financial and material shares. Bonds fell. The dollar was little changed.

"There's kind of two dynamics going on. Probably the most important one is the imminent reduction in liquidity," said Jay Hatfield,CEO at Infrastructure Capital Management. "On top of that, you have the omicron concern."

Goldman Sachs economists cut their U.S. growth forecasts after Democratic Senator Joe Manchin blindsided the White House by rejecting Biden's roughly $2 trillion tax-and-spending package. Meanwhile, Europe's biggest nations weighed more Covid-19 restrictions.

Stocks:

--The S&P 500 fell 1.1% as of 4 p.m. New York time

--The Nasdaq 100 fell 1.1%

--The Dow Jones Industrial Average fell 1.2%

--The MSCI World index fell 1.4%

Currencies:

--The Bloomberg Dollar Spot Index was little changed

--The euro rose 0.3% to $1.1278

--The British pound fell 0.3% to $1.3209

--The Japanese yen was little changed at 113.67 per dollar

Bonds:

--The yield on 10-year Treasuries advanced two basis points to 1.42%

--Germany's 10-year yield advanced one basis point to -0.37%

--Britain's 10-year yield advanced one basis point to 0.77%

Commodities:

--West Texas Intermediate crude fell 3.7% to $68.23 a barrel

--Gold futures fell 0.9% to $1,789.40 an ounce