* Data tempers recent optimism about recovery

* Materials, energy sectors drag on market

* Dow off 0.8 pct; S&P 500 off 1.4 pct; Nasdaq off 0.6 pct

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By Ellis Mnyandu

NEW YORK, June 3 (Reuters) - U.S. stocks tumbled on Wednesday, halting a four-day winning streak, as falling oil prices hit energy shares, while less upbeat economic reports rekindled worries about recovery prospects.

Oil prices slipped more than 3 percent after a surprise build-up in inventories. Shares of energy companies, including Chevron Corp (CVX.N: Quote, Profile, Research), off 1.6 percent, were top drags, along with other natural resource companies and big manufacturers such as Boeing Co (BA.N: Quote, Profile, Research), down almost 2 percent.

Investors took a one-two punch from data showing the vast service sector contracted for the eight straight month in May and from a report showing employers axed 532,000 private-sector jobs last month.

The data, which fell short of consensus expectations, signaled the revival in consumer and business spending, crucial for profit growth, will take longer than previously thought.