NEW YORK (CNNfn) - Major U.S. stock indexes fell for the first time in four sessions Tuesday as investors, facing a lack of market-moving news, bet the recent run-up in equity prices had gone too far.
Financial stocks such as J.P. Morgan, American Express, and Citigroup, which had big gains last week, tumbled, hurting the Dow Jones industrial average.
The Nasdaq composite index also suffered, as losses to Intel, Cisco Systems, and Sun Microsystems drove market prices down.
But the modest losses occurred without any of the conviction of last week's rally, which came after series of economic indicators suggested the economy is slowing. No economic news or major earnings reports hit the wires Tuesday, giving investors few reasons to buy or sell.
 "The sell-off we saw today was more of a trading sell-off," Bob McCooey, analyst at the Griswold Company told CNN's Street Sweep. "I don't think this should be indicative of anything going forward."
Indeed, many analysts are guardedly optimistic about the markets, heartened after by a series of economic numbers last week indicated that the Federal Reserve's rate hike campaign may be nearing an end.
Still, the Nasdaq, higher for most of the session, fell in the last hour of trading, losing 65.37, or 1.7 percent, to 37.56.39. The Dow lost 79.73 to 10,735.57. Both indexes had gained every day since Wednesday.
The broader S&P 500 shed 9.77 to 1,457.85.
 Despite the losses, advancing issues on the New York Stock Exchange edged out declining ones 1,522 to 1,397, on volume of 938 million shares. But Nasdaq losers topped winners 2,099 to 1,940, as more than 1.5 billion shares changed hands.
In overseas markets, the dollar tumbled against the euro and yen. Treasury securities were little changed.
Range trade seen
With no important economic data until Friday's producer price report for May, analysts expect sideways trading in the days ahead.
The market "is not breaking up and it's not breaking down yet," said Kenneth Sheinberg, head of listed trading at S.G. Cowen. "Any rally still should be sold and any sell-off should be bought; it's a perfect trading range."
The three-session rally that pushed the Nasdaq to its highest point in a month Monday was definitely sold on Tuesday.
Cisco Systems (CSCO: Research, Estimates) slumped 1-15/16 to 61-5/16, Intel (INTC: Research, Estimates) shed 3 to 129-9/16, and Sun Microsystems (SUNW: Research, Estimates) lost 4-5/16 to 83-7/8.
Last week those stocks and others gained, as investors bet the central bank, which raised interest rates six times in a year, may almost be through tightening credit. Higher rates, by making it more expensive for companies to borrow, are usually bad for stocks.
 Still, Bryan Piskorowski, market analyst at Prudential Securities, told CNNfn's market coverage that while last week's economic data was a first sign of a slowdown, more evidence is needed to ease interest rate concerns. (386K WAV) (386K AIFF)
Financial stocks, ever sensitive to higher rates, fell. J.P. Morgan (JPM: Research, Estimates) tumbled 3-3/4 to 133-3/8, American Express (AXP: Research Estimates) shed 1-7/16 to 54-3/16, and Citigroup (C: Research, Estimates) fell 1-5/8 to 64-13/16.
Merger Tuesday
In the day's biggest deal, Unilever PLC agreed to purchase Bestfoods for $24.3 billion in cash and debt, creating the world's leading packaged food company. Bestfoods (BFO: Research, Estimates), the maker of Hellmann's mayonnaise and Knorr soups, jumped 6-3/16 to 69-3/16. Unilever (UN: Research, Estimates) gained 7/8 to close at 51-1/4.
 In technology deals, Sycamore Networks, the optical networking provider, said it is buying privately held optical switching maker Sirocco Systems Inc. for $2.9 billion in stock. Sycamore (SCMR: Research, Estimates), one of 1999's best-performing initial public offerings, fell 15/16 to 102.
Merrill Lynch (MER: Research, Estimates) gained 11/16 to 108-3/16. The nation's biggest broker agreed Tuesday to purchase Herzog Heine Geduld, one of the top Nasdaq market makers, for more than $900 million in stock.
Coffee retailer Starbucks (SBUX: Research, Estimates) rose 1-7/8 to 37-1/2. The company is joining the S&P 500 index, replacing Shared Medical Systems (SMS: Research, Estimates), which is being acquired by Siemens AG. 
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