S&P 500 experiences consecutive losses as the trajectory regarding trade agreements continues to lack clarity. On Tuesday, stocks experienced a decline following President Donald Trump’s uncertain remarks regarding global trade agreements, undermining expectations for imminent advancements in tariff negotiations. Investors were also anticipating the Federal Reserve’s policy decision. The Dow Jones Industrial Average experienced a decline of 389.83 points, representing a decrease of 0.95%, concluding the session at 40,829.00. The S&P 500 declined by 0.77%, closing at 5,606.91, while the Nasdaq Composite fell by 0.87%, finishing at 17,689.66. All three of the major averages experienced consecutive declines.

Shares of Tesla declined by 1.8% following a report that the company’s new car sales in Britain and Germany reached their lowest levels in over two years in April, despite an increase in demand for electric vehicles. Goldman Sachs shares experienced a decline of 1.8%, contributing to a downward movement in the Dow. Nvidia and Meta Platforms, two prominent tech giants, also experienced a decline.

Stocks fluctuated following Trump’s meeting with Canadian Prime Minister Mark Carney on Tuesday afternoon, signaling the commencement of negotiations between the two leaders since Carney took office earlier this year. During the meeting, Trump retracted his earlier commitments regarding imminent trade deals, stating, “We don’t have to sign deals.” His statement stands in stark contrast to Treasury Secretary Scott Bessent’s remarks made earlier this week. Bessent informed CNBC on Monday that “we’re very close to some deals,” reflecting remarks made by Trump on Sunday, suggesting that agreements might be reached as soon as this week.

Bessent reiterated this sentiment during his testimony to the House appropriations committee on Tuesday, stating: “Approximately 97 or 98% of our trade deficit is with 15 countries.” Eighteen percent of the countries constitute our major trading partners. It would indeed be surprising if we do not secure more than 80 or 90% of those by the end of the year, and it is possible that this could occur much sooner. It is important to note that official trade agreements between the U.S. and its trading partners have not yet been disclosed. Data released on Monday by the Institute for Supply Management indicated that service sector activity in April was stronger than expected; however, apprehensions regarding tariffs continued to loom.

“We’ll probably go down to new lows, even when Trump dials back China to 50%,” billionaire hedge-fund manager Paul Tudor Jones told CNBC on Tuesday. “He’ll dial it back to 50% or 40%, whatever.” Even when he does that … it would represent the largest tax increases since the 1960s. Thus, one might consider reducing growth by approximately 2% to 3%.

The Federal Reserve commenced its two-day policy meeting on Tuesday, with a decision anticipated for Wednesday. The central bank is anticipated to maintain current rates, as fed funds futures indicate only a 3.1% likelihood of a reduction. Traders will be attentive to Fed Chair Jerome Powell’s remarks regarding his economic outlook. “Despite external pressure to lower rates, the Fed will likely hold strong on the current pause until we see greater clarity on the major economic factors impacting the economy,” said Steve Rick, chief economist at TruStage. “As the impacts of tariffs settle in, we still broadly expect the economy to continue to shift towards a slower pace of growth than in recent months.”