Traders work on the floor of the New York Stock Exchange on March 17, 2025.
NYSE
Stocks edged lower Tuesday as a sell-off that has engulfed Wall Street in recent weeks resumed after two straight winning sessions.
The Dow Jones Industrial Average lost 299 points, or 0.7%. The S&P 500 shed 1.2%, nearing correction territory; it traded nearly 9% below its record. The Nasdaq Composite dropped 8%.
Tesla, one of the stocks hardest hit during the market’s recent correction, was down yet again on Tuesday. The stock fell 4% after RBC Capital Markets lowered its price target on the electric vehicle name, citing rising competition in the EV space. It’s declined 35% over the past month.
The EV-maker wasn’t the only tech name down during the session. Shares of Palantir and Nvidia dropped more than 3% and 2%, respectively. The Technology Select Sector SPDR Fund (XLK) was also down more than 1%.
“It does appear the market really does want to rotate into things that haven’t worked as well, out of things that did work well for the last couple of years, so that may be just what all this is about,” said Rhys Williams, chief investment officer at Wayve Capital.
“The markets are going to remain choppy up until whatever decision is made on April 2,” Williams also said, referring to President Donald Trump’s impending tariff exemption deadline on some imports from Canada and Mexico.
The moves lower follow a second-straight winning session on Wall Street. That marks a turn after several tough weeks on Wall Street as some soft economic data and Trump’s on-again-off-again tariff policy left investors wary of the U.S.’ financial health.
The S&P 500 officially entered correction territory last week, but the index has made up some notable ground in the recovery rally seen in Friday’s and Monday’s sessions. Despite the recent bounce, the tech-heavy Nasdaq still sits in a correction, a term used to describe an index falling at least 10% from a recent high. The three major averages all remain down on the year, underscoring the strength of the market’s pullback.
While investors continue to follow updates out of the White House, they’ll turn their attention to the Federal Reserve two-day policy meeting that kicks off Tuesday.
Traders will closely follow Wednesday afternoon’s interest rate announcement and subsequent press conference with Fed Chair Jerome Powell. Fed funds futures are pricing in a 99% likelihood that the central bank holds rates steady, according to CME’s FedWatch tool.