Volatility returned to Wall Street on Tuesday, with all major indexes trading in negative territory by midday in New York. Investors weighed the economic impact of potential tariffs from the Trump administration while questioning whether the long-standing dominance of U.S. equities has peaked.

The S&P 500 fell 1.1%, while the tech-heavy Nasdaq 100 dropped 1.5%. Blue-chip stocks provided no relief with the Dow Jones down 0.8%.

Data from Bank of America's Global Fund Manager Survey, released Tuesday, signaled a significant shift in asset allocation. Investor exposure to U.S. equities plunged 40 percentage points month-over-month to a net 23% underweight, the lowest level since June 2023.

The Federal Reserve is set to hold its second policy meeting of the year on Wednesday. While markets widely expect interest rates to remain at 4%-4.25%, investors brace for updated economic projections that may reflect higher inflation estimates due to the tariff impact.

All Magnificent Seven tech giants traded in the red on Tuesday, with the Roundhill Magnificent Seven ETF (NYSE:MAGS) hitting a seven-month low.

Meta Platforms Inc. (NASDAQ:META) tumbled 14% month-to-date, on track for its worst monthly performance since October 2022. Alphabet Inc. (NASDAQ:GOOGL) has plummeted 21% since February, marking its worst two-month decline since November 2008.

Amid rising economic uncertainty, gold surged over 1% to $3,040 per ounce, as haven demand intensified. The SPDR Gold Trust (NYSE:GLD) is on track for its sixth consecutive session of gains, the longest streak since April 2024.

Meanwhile, Bitcoin (CRYPTO: BTC) remained under pressure, sliding 2.6% to $81,855.

Tuesday’s Performance In Major U.S. Indices, ETFs

Major Indices	Price	Chg %
Dow Jones	41,492.66	-0.8%
Russell 2000	2,050.11	-0.9%
S&P 500	5,612.52	-1.1%
Nasdaq 100	19,507.30	-1.5%

According to Benzinga Pro data:

• The SPDR S&P 500 ETF Trust (NYSE:SPY) fell 1.1% to $560.89.
• The SPDR Dow Jones Industrial Average (NYSE:DIA) dropped 0.9% to $415.47.
• The tech-heavy Invesco QQQ Trust Series (NASDAQ:QQQ) sunk 1.6% to $475.28.
• The iShares Russell 2000 ETF (NYSE:IWM) eased 1.1% to $203.16.
• The Energy Select Sector SPDR Fund (NYSE:XLE) outperformed, yet still down 0.2%; the Communication Services Select Sector SPDR Fund (NYSE:XLC) was the worst sector performer, down 1.8%.

Tuesday’s Stock Movers

• XPeng Inc. (NYSE:XPEV) tumbled 7.7% in reaction to quarterly earnings.
• Other stocks reacting to corporate earnings included KE Holdings Inc. (NYSE:BEKE), down 10.3%, Tencent Music Entertainment Group (NYSE:TME), up 11.9% and Elbit System Ltd. (NASDAQ:ESLT), up 11%.
• Lucid Group Inc. (NASDAQ:LCID) rallied 11.6% after Morgan Stanley upgraded the stock from Underweight to Equal-weight.
• Sarepta Therapeutics Inc. (NASDAQ:SRPT) plunged 21% after reporting the death of a Duchenne muscular dystrophy patient who had been treated with Elevidys.

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