U.S. stocks fell for a third day, led by energy shares and retailers, after oil prices dropped, Macy’s Inc. cut its earnings forecast and a Federal Reserve official signaled that higher inflation may prevent more rate reductions.

The S&P 500 lost 10.19 points, or 0.8 percent, to 1,326.45. The Dow Jones Industrial Average declined 65.03, or 0.5 percent, to 12,200.1. The Nasdaq Composite Index decreased 30.82, or 1.3 percent, to 2,278.75, the lowest since October 2006, weighed down by a 5.7 percent drop in Apple Inc. More than two stocks fell for every one that rose on the New York Stock Exchange. [MORE]