All three major Wall Street indexes fell in the trading session on Tuesday, with most sectors in the S&P 500 recording losses.
The S&P 500 index fell 0.35% to 23.89 points, the Dow Jones fell 0.45% to 215.67 points, while the technology-focused Nasdaq fell 0.14% to 32.22 points.
Treasury yields rose as investors focused on the Federal Reserve's (Fed) monetary policy update to be announced at the two-day Federal Open Market Committee (FOMC) meeting.
In other developments, expectations for a December interest rate cut strengthened after data last week showed the Personal Consumption Expenditures (PCE) Index rose moderately towards the end of the third quarter.
According to CME's FedWatch, investors are now placing an 89% chance of a 25 basis point interest rate cut on Wednesday.
However, the outlook for 2026 remains uncertain with analysts expecting a ‘hawkish cut’ as Fed Chairman Jerome Powell signalled caution against further easing.
Meanwhile, US President Donald Trump has approved a deal that will allow Nvidia to resume shipments of its H200 artificial intelligence (AI) chip to China.
Trump also stressed that only ‘approved customers’ in China and other regions will be allowed to buy the chips, while the US government will receive 25% of the value of each sale.
Approval of the deal saw Nvidia shares jump more than 2% in after-hours trading.
