The Nasdaq Composite index sank more than 2% and S&P 500 and Dow Jones Industrial Average fell nearly 600 points as markets awaited Wednesday's interest-rate decision from the Federal Reserve.
The $Nasdaq Composite Index (.IXIC.US)$ fell 325.26 (2.04%) to a 15,657.82 close, while the $Dow Jones Industrial Average (.DJI.US)$ gave up 570.17 points (1.5%) to 37,815.92.
Meanwhile, the $S&P 500 Index (.SPX.US)$ shed 80.48 ticks (1.6%) to a 5,035.69 finish.
Stocks fell as Wall Street awaited Wednesday's 2 p.m. ET decision from the Federal Reserve on whether to cut interest rates.
Markets have been hoping a rate cut will boost stocks by lowering bond and money-market yields, but ongoing signs of U.S. inflation mean few investors expect any easing this week. The CME FedWatch Tool gives the odds of a rate cut on Wednesday at just 3.9%.
Among the latest economic data, the U.S. April Consumer Confidence Index came in Tuesday morning at 97 compared to the 104 that analysts had expected.