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Harris-Trump debate scheduled for 9 p.m. ET

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Oracle jumps after Q1 results beat estimates

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Indexes down: Dow 0.89%, S&P 500 0.38%, Nasdaq 0.26%

(Updated at 12:23 p.m. ET/1623 GMT)

By Shubham Batra and Shashwat Chauhan

Sept 10 (Reuters) - Wall Street's main indexes fell on

Tuesday ahead of key inflation data later this week that could

provide clarity on the extent of the Federal Reserve's expected

interest rate cut, while a fall in the shares of big banks

weighed on the markets.

JPMorgan Chase ( JPM ) was down nearly 7% after the bank's

president tempered expectations about its income from interest

payments, while Goldman Sachs ( GS ) fell 4.7% following CEO

David Solomon's comments that the lender's trading revenue will

probably slip 10% in the third quarter.

The S&P financial index lost 1.3%.

Also on Tuesday, the Fed's regulatory chief outlined a

sweeping overhaul easing two major draft bank capital rules

following intense industry opposition.

Apple ( AAPL ) fell 1% after China's Huawei launched a

tri-fold smartphone hours after the debut of a new iPhone.

The iPhone maker also lost its fight against an order by EU

competition regulators to pay 13 billion euros ($14.34 billion)

in back taxes to Ireland.

Energy stocks were the biggest loser among the S&P

500 sectors, falling to their lowest since February as oil

prices dipped on a weaker demand outlook.

Wall Street's main indexes had recorded gains of more than

1% on Monday as investors looked for bargains following a week

of steep losses.

The focus this week continues to be on the August inflation

reading on Wednesday that is likely to show a slight moderation

in the headline number to 2.6% on a year-on-year basis, while it

is expected to remain unchanged at 0.2% on month.

On Thursday, the producer prices report will follow the CPI

data.

"A 25-basis point interest rate cut seems perfectly

reasonable ... there might be a little bit of a risk of

overreaction if the Fed were to go 50 bps," Lara Castleton, U.S.

head of portfolio construction and strategy at Janus Henderson

Investors, said.

Money markets are all but convinced that the Fed will begin

its policy easing cycle later this month, with a 71% chance of a

25-bps cut and a total easing of 100 bps by the end of 2024,

according to CME's FedWatch Tool.

All eyes will be on the highly anticipated televised debate

between Kamala Harris and Donald Trump. The two, who have never

met in person, will square off at 9 p.m. ET (0100 GMT) for a

90-minute debate hosted by ABC News.

At 12:23 p.m. ET, the Dow Jones Industrial Average

fell 364.97 points, or 0.89%, to 40,464.62, the S&P 500

lost 20.52 points, or 0.38%, to 5,450.53, and the Nasdaq

Composite lost 44.30 points, or 0.26%, to 16,840.30.

Oracle jumped 12.2% after beating estimates for

quarterly results and forecast second-quarter revenue growth

above expectations, boosted by growing demand for its cloud

offerings.

Hewlett Packard Enterprise ( HPE ) dropped 7.8% after the AI

server maker announced a $1.35 billion mandatory convertible

preferred stock offering to fund its acquisition of Juniper

Networks ( JNPR ).

Declining issues outnumbered advancers for a 1.87-to-1 ratio

on the NYSE and a 2.01-to-1 ratio on the Nasdaq.

The S&P 500 posted 39 new 52-week highs and 12 new lows,

while the Nasdaq Composite recorded 32 new highs and 130 new

lows.

($1 = 0.9064 euros)