The US stock market experienced a decline on Tuesday, particularly in the Nasdaq, which dropped by nearly 2%. This came after two days of gains, with investors showing concerns about a potential economic slowdown and looking to gain insights from the upcoming Federal Reserve policy meeting.

The Nasdaq Composite fell by around 1.5%, mainly driven by a 1% drop in Nvidia shares, although they partially recovered from earlier losses with the start of their annual GTC conference. The Dow Jones Industrial Average and the S&P 500 also saw declines of approximately 0.8% and 1%, respectively.

There is still market uncertainty as investors discuss whether the recent sell-off, which led the S&P 500 into correction territory, has come to an end. Many analysts are skeptical that the recent stock market uptick indicates a solid bottom, particularly as worries grow about the impact of President Trump's trade war on an already weakening economic growth outlook.

The focus is shifting towards Nvidia's major annual event, the GTC conference, where investors are eagerly anticipating the unveiling of the Blackwell Ultra AI chip and the next-generation GPU platform.

Additionally, market attention is on the Federal Reserve's ongoing two-day policy meeting starting on Tuesday, with particular interest in any mention of the potential economic risks posed by tariffs. It is widely expected that policymakers will maintain current interest rates in their decision scheduled for Wednesday.

In other news, new housing starts showed a strong increase of 11.2% from the previous month, reaching a seasonally adjusted annual rate of 1.501 million units, surpassing economist estimates.