US stocks pulled back on Tuesday, led by a nearly 2% decline in the Nasdaq, following two days of gains as investors concerned about an economic slowdown looked to the Federal Reserve's policy meeting for insights.
The tech-heavy Nasdaq Composite (^IXIC) plummeted about 1.7% as Nvidia (NVDA) shares fell roughly 3% as its annual GTC event failed to impress investors. Other "Magnificent Seven" names also dragged down the tech-heavy index. Notably, those stocks are having their worst quarter in more than two years.
The Dow Jones Industrial Average (^DJI) and S&P 500 (^GSPC) also moved to the downside on Tuesday, dropping about 0.6% and 1.1%, respectively.
Uncertainty still dogs markets as investors debate whether the sell-off that pushed the S&P 500 into correction territory is over. Traders now turn their attention to the Fed's two-day policy meeting, which kicked off on Tuesday, for clues on the health of the economy and potential tariff risks.
Policymakers are largely expected to hold rates steady in their decision on Wednesday.
Read more: The latest on Trump's tariffs
The kickoff of Nvidia's biggest conference of the year — the annual GTC event — was in the spotlight earlier in the trading day, with CEO Jensen Huang telling a sold-out crowd that AI is at an "inflection point."
During his keynote, Huang revealed General Motors (GM) is partnering with Nvidia to build its own self-driving cars. Shares of GM closed down around 1% following the news, with some analysts pointing to the high cost of Nvidia chips relative to competitors.
Huang also touted the debut of the company's Blackwell Ultra AI chip, set to arrive in the second half of this year. In addition to the Blackwell Ultra chip, Nvidia also announced its GB300 superchip, which combines two Blackwell Ultras with the company's Grace central processing unit (CPU).
As Yahoo Finance's Dan Howley noted, the chips are designed to power AI systems for customers ranging from hyperscalers like Amazon (AMZN), Google (GOOG, GOOGL), Microsoft (MSFT), and Meta (META) to research labs around the world.
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