US stocks declined on Tuesday after two consecutive days of gains as investors, worried about a potential economic slowdown, turned their attention to the Federal Reserve's upcoming policy meeting for guidance.

The Dow Jones Industrial Average and S&P 500 dropped by approximately 0.3% and 0.4%, respectively, while the Nasdaq Composite fell by 0.8%.

Market uncertainty lingered as investors debated whether the recent market sell-off had come to an end. There are concerns that the ongoing trade war initiated by President Trump could further impact the already weakening economic growth.

The focus was also on the launch of Nvidia's annual GTC event, where investors were eager to see the unveiling of the Blackwell Ultra AI chip and the next-generation GPU platform. Nvidia's CEO Jensen Huang's keynote address was closely watched by Wall Street as an indicator for the market.

Geopolitical tensions, including Israeli airstrikes on Gaza and Trump's negotiations with President Putin, contributed to gold prices reaching a record high. This led investors to shift away from US stocks, resulting in an increase in crude oil prices.

The market is now awaiting the Federal Reserve's policy meeting, with a particular interest in how tariffs might affect the economy. It is widely anticipated that policymakers will maintain the current interest rates when they announce their decision on Wednesday.

Additionally, data from the Census Bureau showed a significant 11.2% rise in new housing starts from the previous month, surpassing economists' estimates.