Italy leads markets down

Markets fell on Tuesday.

The S&P 500 fell 1.2 percent, the STOXX Europe 600 fell 1.4 percent and the Nikkei 225 fell 0.5 percent.

Investors' concerns were focussed on Italy, where the FTSE MIB plunged 2.7 percent after the populist 5 Star Movement and League parties called for new elections following President Sergio Mattarella's rejection of their choice for economy minister.

“Today’s selling is happening on a larger volume, which is concerning. It means that investors are now worried about contagion from the fallout in Italy,” said Joe Saluzzi, partner and co-head of equity trading at Themis Trading.

While investors may be getting uneasy, consumer confidence, at least in the US, remains solid. The Conference Board's consumer confidence index rose to 128 in May, near an 18-year high, from 125.6 in April.