US STOCKS-Wall St drops as rate concerns rise
* Strong economic data pushes dollar up
* All 10 S&P sectors lower
* Indexes down: Dow 1.2 pct, S&P 1.2 pct, Nasdaq 1.3 pct (Updates to late afternoon)
By Caroline Valetkevitch
May 26 (Reuters) - The S&P 500 was on track for its biggest percentage drop since March on Tuesday as some upbeat economic data fueled expectations that a Federal Reserve rate hike could come sooner rather than later.
All 10 major S&P 500 sectors were lower, with the energy index's down the most at 1.9 percent as oil prices fell.
Transportation stocks also dropped, with the Dow Jones transportation average falling 1.6 percent to 8346.82 and hitting its lowest level since Oct. 23. The dollar was up 1.4 percent against a basket of major currencies as commodity prices fell.
"It's concern about a bunch of things, one being higher rates," said Larry Peruzzi, senior equity trader at Cabrera Capital Markets Inc in Boston. "Being a shortened week, sometimes these moves get exaggerated."
Reports on Tuesday showed U.S. business investment spending plans increased solidly in April, consumer confidence perked up this month and house prices extended gains in March. Continuación...