BY COMFORT OGBONNA
U.S. stock markets fell on Tuesday as investors awaited the Federal Reserve’s monetary policy outlook and monitored developments in President Donald Trump’s planned call with Russian President Vladimir Putin regarding a potential ceasefire in Ukraine.
The Fed’s two-day policy meeting began Tuesday, with expectations that interest rates will remain unchanged. Policymakers have signaled caution, preferring to assess the economic impact of ongoing trade tensions before making adjustments.
“The Fed does not want to act prematurely, especially given the uncertainty surrounding policy impacts,” said Art Hogan, market strategist at B. Riley.
Market Performance
At 9:54 a.m. ET, the Dow Jones Industrial Average dropped 206.06 points (0.49%) to 41,635.57, the S&P 500 lost 54.92 points (0.97%) to 5,620.20, and the Nasdaq Composite fell 295.45 points (1.66%) to 17,513.21.
Key Movers
Nvidi fell 3% as investors awaited details on its latest AI chip announcement at its annual developer conference.
Tesladeclined 5.9% after brokerage RBC cut its price target, citing market share losses in China and Europe.
Alphabet dropped 4% after announcing a $32 billion acquisition of cybersecurity firm Wiz, marking its largest deal ever.
Meanwhile, gold continued its rally, reaching record highs above $3,000 per ounce. Gold mining stocks such as Barrick Gold (+2%) and Gold Fields (+3.6%) saw gains as investors sought safe-haven assets.
Trump-Putin Call & Geopolitical Concerns
Trump is expected to speak with Putin between 9 a.m. and 11 a.m. ET to push for a ceasefire in Ukraine, which could impact market sentiment. “Any positive developments from the call could help reverse early market weakness,” said Peter Cardillo, chief market economist at Spartan Capital Securities.
Market Correction & Economic Data
Markets were pulling back after recent gains, with the S&P 500 down more than 10% from its February peak, signaling a correction. The Nasdaq confirmed its correction status earlier this month, while the Dow is approaching correction territory.
On the economic front, U.S. single-family home construction rebounded sharply in February, providing a bright spot in an otherwise cautious market environment.
Declining stocks outpaced advancing ones on the NYSE by a 2.09-to-1 ratio and on the Nasdaq by a 2.9-to-1 ratio. The S&P 500 recorded three new 52-week highs and one new low, while the Nasdaq logged 21 new highs and 75 new lows.
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