On Tuesday, the US stock market experienced a decline, with the Nasdaq dropping nearly 2%, interrupting a two-day winning streak. Investors, worried about a possible economic slowdown, were closely watching the Federal Reserve's upcoming policy meeting for guidance.

The Nasdaq Composite index saw a significant 1.8% decrease, with Nvidia shares sliding 2% before its annual GTC conference in California. Similarly, the Dow Jones Industrial Average and S&P 500 also exhibited losses, down by around 0.8% and 1.2% respectively.

Despite recent market fluctuations, there is still uncertainty prevailing among investors who are pondering whether the S&P 500 correction phase has concluded. Concerns linger about the impact of President Trump's trade tensions on an already weakening economy.

The focus shifted to Nvidia's major annual GTC event, particularly the anticipated launch of the Blackwell Ultra AI chip and the next-generation GPU platform. Nvidia's CEO Jensen Huang's keynote address at 1 p.m. ET was eagerly awaited by investors, with many seeing Nvidia's performance as a barometer for the wider market sentiment.

Investors are now awaiting the Federal Reserve's two-day policy meeting starting on Tuesday, where attention will be on how the central bank addresses the economic risks posed by tariffs. It is widely expected that policymakers will maintain the current interest rates in their decision on Wednesday.

In other news, new housing starts surged by 11.2% from the prior month to reach a seasonally adjusted annual pace of 1.501 million units, surpassing economists' estimates of 1.385 million units.