Market Jitters: Tariffs, Fed, and Tech Stocks Send U.S. Stocks Tumbling

U.S. stocks dropped as caution over Federal Reserve's upcoming policy decision and President Trump's tariffs weighed on investors. Market indexes such as the S&P 500, Nasdaq, and Dow Jones suffered losses. Inflation worries and tech sector woes, including Alphabet's acquisition plans and Tesla's stock hit, contributed to the market's decline.

U.S. stocks took a hit on Tuesday, breaking a two-session streak of gains as investors tread carefully before the Federal Reserve's impending monetary policy announcement. The anticipation of the Fed's decision, coupled with President Donald Trump's tariff strategies, fueled investor anxiety.

While the markets anticipate about 60 basis points of interest rate cuts from the Fed this year, there is caution against hasty decisions. Senior portfolio strategist Tim Ghriskey highlighted the prevailing uncertainty surrounding tariff impacts on the economy and potential Fed actions.

Market indices showed a marked decline, with the S&P 500, Nasdaq, and Dow Jones all falling significantly. Growth stocks, particularly tech companies like Alphabet and Tesla, faced pressure amidst acquisition news and slashed price targets. Amidst these tensions, investors turned to safe havens, pushing gold prices to new heights.

(With inputs from agencies.)