STORY: U.S. stocks snapped a two-session streak of gains, with the Dow dropping six-tenths of a percent, the S&P 500 shedding over one percent and the Nasdaq plunging 1.7%.
Investors exercised caution ahead of a monetary policy decision from the Federal Reserve on Wednesday, while continuing to gauge the potential impact of President Donald Trump’s tariff policies.
Michael Landsberg is chief investment officer at Landsberg Bennett Private Wealth Management.
“Tariff uncertainty has not been a great thing. I think people are worried about what’s going to happen. And so I think having a bit of cash, cash still pays, you know, pays a good rate of return. I think people have looked at that and said, ‘you know, we may have to hunker down a little bit longer than we thought to get some clarity around tariffs.’ And so that’s what people are going to do.”
Stocks had shown some signs of stabilizing after weeks of declines that sent the S&P 500 and Nasdaq into correction territory.
The blue-chip Dow is now just over 2% away from also entering a correction.
Megacap tech stocks were among the hardest hit on Tuesday, with Nvidia sliding almost three and a half percent. Speaking at the company’s annual software developer conference, CEO Jensen Huang defended the company’s lead in selling AI chips.
Tesla tumbled more than 5% after brokerage RBC slashed its price target on the EV maker’s stock, citing reduced expectations for its full self-driving pricing and robotaxi market share. Its shares are now down nearly 45% on the year.
And shares of Alphabet fell more than 2% after the company said it would buy Wiz for about $32 billion in its biggest deal ever as the Google parent doubles down on cybersecurity.
