Investor sentiment took a hit on Tuesday as caution prevailed ahead of significant market events, including key tech earnings reports and the Federal Open Market Committee meeting.

The Nasdaq 100, heavily weighted with tech stocks, experienced the most significant decline among major U.S. indices, dropping 1.5%. Semiconductor stocks were particularly affected, with Nvidia Corp. (NASDAQ:NVDA) plummeting over 6% to a two-month low, impacting the entire industry.

Consequently, the iShares Semiconductor ETF (NYSE:SOXX) fell nearly 3%, marking its sixth negative close in the last eight sessions.

The S&P 500 also dipped 0.8%, primarily due to its heavy tech exposure, while the Dow Jones and Russell 2000 managed to avoid losses. Notably, the iShares Russell 2000 ETF (NYSE:IWM) has outperformed tech stocks by 15% so far this month.

Microsoft Corp. (NYSE:MSFT) declined more than 1% ahead of its post-market earnings announcement, while Apple Inc., Alphabet Inc. (NASDAQ:GOOGL), and Meta Platforms Inc. (NASDAQ:META) experienced smaller losses in anticipation of their reports later in the week.

Crowdstrike Holdings Inc. (NASDAQ:CRWD) was the worst-performing tech stock on Tuesday, plunging nearly 12% after Delta Air Lines announced it would seek compensation from the cybersecurity firm for last week’s outage.

Meanwhile, Treasury yields remained steady, gold edged up 0.3%, and the Japanese yen, tracked by the Invesco CurrencyShares Japanese Yen Trust (NYSE:FXY), gained 0.4% against the dollar in anticipation of a potential Bank of Japan rate hike.

Bitcoin (CRYPTO: BTC) fell 1.5% to $65,812.

Tuesday’s Performance In Major US Indices, ETFs

According to Benzinga Pro data:

• The SPDR S&P 500 ETF Trust (NYSE:SPY) was 0.7% lower to $541.00.
• The SPDR Dow Jones Industrial Average (NYSE:DIA) rose 0.3% to $406.60.
• The tech-heavy Invesco QQQ ETF (NASDAQ: QQQ) fell 1.5% to $457.06.
• The iShares Russell 2000 ETF (NYSE:IWM) rose 0.16% to $222.09.
• Sector-wise, the Energy Select Sector SPDR Fund (NYSE:XLE) outperformed, up 1.2%, while the Technology Select Sector SPDR Fund (NYSE:XLK) lagged, down 2.4%.

Tuesday’s Stock Movers

Stocks moving on earnings were:

• F5, Inc. (NASDAQ:FFIV), up over 11%.
• Hologic Inc. (NASDAQ:HOLX), up 2.7%
• Woodward Inc. (NASDAQ:WWD), down 18%.
• Chesapeake Energy Corp. (NYSE:CHK), down 0.6%.
• Amkor Technology Inc. (NASDAQ:AMKR), down 18%.
• Crane Company (NYSE:CR), down 4%.
• Lattice Semiconductor Corporation (NASDAQ:LSCC), down 8%.
• Procter & Gamble Company (NYSE:PG), down 5.6%.
• Merck & Company Inc. (NYSE:MRK), down 10%.
• Pfizer Inc. (NYSE:PFE), down 0.5%.
• S&P Global Inc. (NYSE:SP), down 0.7%.
• Illinois Tool Works Inc. (NYSE:ITW), down 0.5%,
• PayPal Holdings, Inc. (NASDAQ:PYPL), up 7.4%.
• Ecolab Inc. (NYSE:ECL), down 8.4%.
• Phillips 66 (NYSE:PSX), up 5.2%.
• American Electric Power Company, Inc. (NASDAQ:AEP), flat.
• Gartner Inc. (NYSE:IT), up 6.7%.
• Archer-Daniels-Midland Company (NYSE:ADM), down 0.4%
• JetBlue Airways Corporation (NASDAQ:JBLU), up 17%.
• LGI Homes, Inc. (NASDAQ:LGIH), up 8%.
• Logitech International S.A. (NASDAQ:LOGI), up 0.6%.
• Restaurant Brands International Inc. (NYSE:QSR), down 0.5%
• SoFi Technologies, Inc. (NASDAQ:SOFI) down 1.9%.

Companies reporting earnings after the close include:

• Advanced Micro Devices, Inc. (NASDAQ:AMD)
• Arista Networks, Inc. (NYSE:ANET)
• Caesars Entertainment, Inc. (NASDAQ:CZR)
• DoubleVerify Holdings, Inc. (NYSE:DV)
• Electronic Arts Inc. (NASDAQ:EA)
• First Solar, Inc. (NASDAQ:FSLR)
• Freshworks Inc. (NASDAQ:FRSH)
• Live Nation Entertainment, Inc. (NYSE:LYV)
• Match Group, Inc. (NASDAQ:MTCH)
• Microsoft
• Mondelez International, Inc. (NASDAQ:MDLZ)
• Pinterest, Inc. (NYSE:PINS)
• Skyworks Solutions, Inc. (NASDAQ:SWKS)
• Starbucks Corporation (NASDAQ:SBUX)
• Qorvo, Inc. (NASDAQ:QRVO).

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Image created using artificial intelligence via Midjourney.