U.S. stocks declined on Tuesday, marking the third consecutive session of losses for the Dow and S&P 500, as investors awaited economic data to assess the Federal Reserve’s policy direction. Despite modest gains late in the session, stocks struggled for upward momentum.
Tesla saw a 2.92% increase after CEO Elon Musk announced a one-month trial of its Full Self-Driving technology, contributing to a 4% weekly gain. However, the stock remains down over 28% for the year.
Investors are focused on the upcoming release of the Personal Consumption Expenditures Price Index (PCE) on Friday, which serves as the Fed’s preferred inflation measure. Economists anticipate a 0.4% rise in February and a 2.5% annual increase in the index.
Stephen Massocca from Wedbush Securities emphasized the significance of Friday’s data, suggesting that market activity until then may be subdued. Any indication from the Fed of further interest rate hikes could negatively impact the market sentiment.
In economic news, U.S. orders for durable goods exceeded expectations in February, indicating potential recovery in business spending on equipment. The Conference Board reported a marginal change in consumer confidence for March.
The Dow Jones Industrial Average fell 0.08%, the S&P 500 lost 0.28%, and the Nasdaq Composite slid 0.42%. These declines followed record highs reached last week after the Fed maintained its projection for three interest-rate cuts this year.
Expectations of a rate cut in June have increased to 70.4%, up from 59.2% last week, according to the CME’s FedWatch Tool.
Trump Media & Technology group surged 16.1% on its first day of trading after completing a reverse merger, while spice maker McCormick’s shares jumped 10.52% after beating market expectations for first-quarter sales and profit.
Seagate Technology gained 7.38% after receiving an upgrade from Morgan Stanley, but United Parcel Service shares declined by 8.16% following its 2026 forecast announcement.
Declining issues outnumbered advancers on both the NYSE and Nasdaq, with light trading volumes expected throughout the week ahead of the holiday.