NEW YORK, March 18 (Xinhua) -- U.S. stocks closed lower on Tuesday, snapping a two-day winning streak as investors weighed concerns about an economic slowdown ahead of the Federal Reserve's policy meeting.
The Dow Jones Industrial Average dropped 260.32 points, or 0.62 percent, to 41,581.31. The S&P 500 declined 60.45 points, or 1.06 percent, to 5,614.66. The Nasdaq Composite fell 304.54 points, or 1.71 percent, to 17,504.12.
Nine of the 11 primary S&P 500 sectors finished in negative territory, with communication services and consumer discretionary leading the losses, down 2.14 percent and 1.90 percent, respectively. Energy and health care were the only sectors to gain, rising 0.22 percent and 0.12 percent, respectively.
Uncertainty remains as markets continue to assess whether the recent downturn that pushed the S&P 500 into correction territory has run its course. Many on Wall Street remain skeptical, warning that the recent rebound may not signal a definitive bottom, especially as worries grow that President Donald Trump's trade policies could further pressure an already slowing economy.
"The markets are going to remain choppy up until whatever decision is made on April 2," said Rhys Williams, chief investment officer at Wayve Capital, referring to Trump's impending tariff exemption deadline on some imports from Canada and Mexico.
On the corporate front, Nvidia's highly anticipated GTC Conference kicked off, widely regarded as the premier AI event of the year. Nvidia CEO Jensen Huang delivered a keynote address in the afternoon, confirming that Nvidia would launch its upcoming AI chip, Blackwell Ultra, in the second half of 2025, as previously expected. While investors had hoped it would boost the stock, Nvidia shares fell 3.34 percent, dipping further than their levels before Huang's speech.
Meanwhile, attention is shifting to the Federal Reserve's two-day policy meeting, which began on Tuesday. While the central bank is widely expected to leave interest rates unchanged in its decision on Wednesday, investors focus remains on the Fed's economic projections, which will include the closely watched "dot plot" outlining policymakers' expectations for future interest rates.
"We expect the median rate projections ('dots') to remain unchanged for 2025-27. With market sentiment on edge and little intrigue around the May meeting, the Fed can afford to be patient about pushing back on cut pricing," analysts at Nomura wrote Tuesday. ■
