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NEW YORK (CNNMoney) -- Investors took a big step back Tuesday, but stocks have had a pretty strong year so far, so the retreat isn't ringing any alarm bells.

"You're still seeing echoes of the risk-on-risk-off trade," Jonathan Lewis, chief investment officer at Samson Capital Advisors. "But I would offer that all investors are doing is restructuring and rebalancing portfolios."

Since the start of the year, stocks have slowly and steadily made their way toward their highest levels since 2008, helped along by the U.S. economy's steady improvement.

While March has not been a good month so far, the Dow is still up 4.4% for the year. The S&P 500 has gained nearly 7% and the Nasdaq is up 11.7% year to date.

Stocks were pressured Tuesday by weaker economic data out of Europe and rising yields on euro-area government bonds, said Lewis.

The Dow Jones industrial average (INDU) fell 207 points, or 1.6%, to end at 12,759. That marks the worst day for the index since Dec. 8, when it fell 1.63%. Today also marks the first time the Dow has suffered a triple-digit loss in 45 days.

Financial stocks were among the hardest hit, with Bank of America (BAC, Fortune 500) and JPMorgan Chase (JPM, Fortune 500) both down about 3%. The only Dow component showing a modest gain was Intel (INTC, Fortune 500).

The S&P 500 (SPX) fell 21 points, or 1.5%, to 1,343. The Nasdaq (COMP) sank 40 points, or 1.4%, to 2,910. Both indexes suffered the worst one-day performance so far this year.

Meanwhile, investors are wary of political tension between Iran and Israel, which has driven oil and gas prices sharply higher, said Mark Martiak, senior wealth strategist at Premier Financial Advisors.

Originally posted here:
Stocks: Worst day of 2012