Wall Street Ends down on Trade worries as Fed decision Looms

The Dow dropped six-tenths of a percent, the S&P 500 fell more than one percent, and the Nasdaq fell 1.7%, snapping a two-session winning run.

Investors were cautious ahead of the Federal Reserve’s monetary policy announcement on Wednesday, while continuing to assess the possible impact of President Donald Trump’s tariff measures. Michael Landsberg is the chief investment officer for Landsberg Bennett Private Wealth Management. “Tariff uncertainty hasn’t been a good thing. I believe people are concerned about what will happen. And so I believe that holding some cash still pays, you know, at a fair rate of return.

I believe people have looked at it and said, “You know, we might have to hunker down a little more than we anticipated to get a grasp on tariffs.” So that’s what people will do. Stocks appeared to be recovering following weeks of falls that pushed the S&P 500 and Nasdaq into correction zone. The blue-chip Dow is currently little over 2% away from seeing a correction.

Megacap tech companies were among the most hit on Tuesday, with Nvidia down nearly 3.5 percent. Speaking at the company’s annual software developer conference, CEO Jensen Huang reaffirmed the company’s lead in AI chip sales. Tesla’s shares fell more than 5% after brokerage RBC cut its price target on the EV company, citing lower estimates for full self-driving pricing and robotaxi market share. Its stock is already down over 45% for the year. And Alphabet shares plummeted more than 2% after the firm said that it will purchase Wiz for around $32 billion in its largest transaction ever, as the Google parent doubles its investment in cybersecurity.