U.S. equities fell sharply as liquidity concerns and Fed policy weighed on technology shares, extending a multi-day downturn.
The S&P 500 closed 0.9% lower on Tuesday, while the Nasdaq Composite dropped 1.4%, led by a sharp decline in technology stocks. The selloff accelerated from earlier in the week, driven by reduced market liquidity and heightened volatility.
Prior sessions had seen modest losses, but Tuesday’s decline marked the steepest drop in over a week. The Federal Reserve’s decision to hold interest rates steady contributed to a stronger U.S. dollar and a slight dip in Treasury yields, adding pressure to risk assets.
Investors are also monitoring U.S.-Iran negotiations, with potential progress seen as a catalyst for shifts in market sentiment and energy-related equities.