Market Jitters as Wall Street Awaits Fed's Decision Amid Tariff Woes

U.S. stocks fell on Tuesday, snapping a two-day gain streak, as investors awaited the Federal Reserve's monetary policy decision amid uncertainty over tariffs. The market is anticipating potential rate cuts, but officials are cautious. With geopolitical tensions and economic data in focus, defensive asset segments like gold rose.

On Tuesday, Wall Street experienced a downturn, ending a two-day rally as investors adopted a cautious stance ahead of the Federal Reserve's upcoming monetary policy decision. Simultaneously, concerns over President Trump's tariff strategies added uncertainty to the market.

The Federal Reserve is set to release its policy statement on Wednesday. Although markets have priced in 60 basis points of rate cuts this year, several Fed officials warned against hasty decisions, emphasizing the need to assess the tariff impacts through economic data before policy adjustments.

Additionally, geopolitical developments, such as a proposed ceasefire in Ukraine, and unexpected inflation signals from rising import prices brought complexity to the market atmosphere. Defensive assets, including gold, reached new heights, further emphasizing investor caution during this volatile period.

(With inputs from agencies.)