NEW YORK, New York - Disappointing economic data put an end to Wall Street's recent rally Tuesday, with all indices giving up ground.

With consumers across America expecting higher inflation, and consumers losing confidence at a fast rate, according to The Confidence Board's latest readings, there was nowhere for stocks to go on Tuesday but down.

"Right now we are at an inflection point in the economy, where actual spending and economic activity is still positive, however, consumer confidence and financial conditions (especially interest rate are indicating a slowdown ahead," Chris Zaccarelli, chief investment officer for Independent Advisor Alliance told CNBC Tuesday. "If we are able to avoid a recession then the stock market is fairly valued, however, if we do go into recession then we would expect the lows for the year haven't been hit yet."

The Nasdaq Composite was the hardest hit index, losing 2.98 percent or 343.06 points. The index closed at 11,181.54.

The Dow Jones industrials dived 491/27 points or 1.56 percent to 30,946.99.

The Standard and Poor's 500 retreated 78/56 points or 2.01 percent to 3,821.55.

The U.S. dollar drifted higher with the euro edging down to 1.0524. The British pound eased to 1.2185. The Japanese yen fell to 136.11. The Swiss franc was slightly lower at 0.9574.

The Canadian dollar fell to 1.2877. The Australian dollar was losing friends at 0.6908. The New Zealand dollar fell to 0.6244.

On overseas equity markets, the CAC 40 in Paris, France rose 0.64 percent. The German Dax added 0.35 percent. In London, the FTSE 100 firmed 0.90 percent.

China's Shanghai Composite gained 30.02 points or 0.89 percent to 27,049.97.

The Hang Seng in Hong Kong added 189.45 points or 0.85 percent to 22,418.47.

The Australian All Ordinaries rose 59.80 points or 0.87 percent to 6,953.40.

In New Zealand, the S&P/NZX 50 added 20.70 points or 0.19 percent to 11,018.62.

South Korea's Kospi Composite advanced 20.70 points or 0.84 percent to 2,422.09.

In Japan, the Nikkei 225 climbed 178.22 points or 0.66 percent to 27,049.97.