Stock market today: Live updates

Stocks edged lower Tuesday as a sell-off that has engulfed Wall Street in recent weeks resumed after two straight winning sessions.

The Dow Jones Industrial Average lost 164 points, or 0.4%. The S&P 500 shed 0.7%, nearing correction territory; it traded around 8.5% below its record. The Nasdaq Composite dropped 1.2%.

Tesla, one of the stocks hardest hit during the market’s recent correction, was down yet again on Tuesday. The stock fell 5% after RBC Capital Markets lowered its price target on the electric vehicle name, citing rising competition in the EV space. It’s declined 36% over the past month.

Those moves follow a second-straight winning session on Wall Street. That marks a turn after several tough weeks on Wall Street as some soft economic data and President Donald Trump’s on-again-off-again tariff policy left investors wary of the U.S.’ financial health.

The S&P 500 officially entered correction territory last week, but the index has made up some notable ground in the recovery rally seen in Friday’s and Monday’s sessions. Despite the recent bounce, the tech-heavy Nasdaq still sits in a correction, a term used to describe an index falling at least 10% from a recent high. The three major averages all remain down on the year, underscoring the strength of the market’s pullback.

While investors continue to follow updates out of the White House, they’ll turn their attention to the Federal Reserve two-day policy meeting that kicks off Tuesday.

Traders will closely follow Wednesday afternoon’s interest rate announcement and subsequent press conference with Fed Chair Jerome Powell. Fed funds futures are pricing in a 99% likelihood that the central bank holds rates steady, according to CME’s FedWatch tool.

“We had two distinct stages to what was the fifth fastest correction since World War II: The first one was a good old growth scare, then we had pretty nasty technicals,” said Mohamed El-Erian, chief economic advisor at Allianz. “Most of the bad technicals are behind us. So the two questions going forward is: Will the growth scare be contained? And will the hope in the Fed put prove realistic or not?”