Investors faced another challenging day on Tuesday as several major indices saw further declines, pushing some into correction territory. Tesla's stock, which has plummeted 44% in 2025, was among the worst performers. Meanwhile, Nvidia's shares have dropped by 14% during the same period. Meta Platforms also experienced a significant decline, with a 3.7% drop on Tuesday, pushing the Facebook parent's shares into negative territory for the year.
The S&P 500 futures and Nasdaq 100 futures each shed about 0.1%, while the Dow Jones Industrial Average lost 0.6%. The S&P 500 itself shed more than 1%, officially entering correction territory last week. This marks a challenging time for investors as the broad market index ended the day 8.6% below its February record close.
Meta's decline of 3.7% on Tuesday has now positioned it down 0.5% in 2025, making it the last member of the "Magnificent Seven" to fall into negative territory for the year. The recent market sell-off reared its head once again after two sessions of gains, leaving investors wary.
The Federal Reserve's pending interest rate decision adds a layer of uncertainty to an already volatile market environment. As investors await the Fed's next move, concerns about the economic outlook and potential rate hikes loom large.
Scott Helfstein, Global X's head of investment strategy, commented on the current market conditions, expressing concern over rising risks.
"That is likely still true, but risks to both are rising." – Scott Helfstein, Global X's head of investment strategy.
The Nasdaq remains in correction following the recent downturn. With the broader market experiencing turbulence, investors are on edge and grappling with volatility in their portfolios.