US stocks saw a decline on Tuesday as investors awaited President Trump's much-anticipated announcement of new reciprocal tariffs, referred to as "Liberation Day." The S&P 500, Dow Jones Industrial Average, and Nasdaq Composite all fell by around 0.4% following the opening bell.

While the S&P 500 showed some recovery on Monday, it concluded a challenging March close to its yearly lows. Trade-war concerns were the main driver behind the index's worst first quarter in three years. Despite the rebound, investors remain wary of persistent risks affecting stock performance.

Speculation surrounds Trump's forthcoming tariff announcement, with uncertainty prevailing about whether the tariffs will be broad or selectively applied to certain countries. Analysts predict that the US tariff rate may reach its highest level in decades, adding pressure to an already struggling economy dealing with sluggish growth and persistent inflation.

Other economic indicators, such as the JOLTS report on February job openings, expected later, will give insights into the labor market's health before the critical monthly jobs report on Friday. The labor market's resilience has so far provided some relief to fears of an economic downturn on Wall Street.