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U.S. stocks fell sharply Tuesday as uncertainty over global trade negotiations and caution ahead of the Federal Reserve\u2019s rate decision weighed on markets.\u00a0<\/p>\n
The Dow Jones Industrial Average dropped 389.83 points, or 0.95%, while the S&P 500 lost 0.77% and the Nasdaq Composite slipped 0.87%.<\/p>\n
The sell-off came after President Donald Trump dialed back expectations for imminent trade deals during a meeting with Canadian Prime Minister Mark Carney. \u201cWe don\u2019t have to sign deals,\u201d Trump said<\/a>, contradicting earlier remarks by both himself and Treasury Secretary Scott Bessent, who had suggested major agreements were close.<\/p>\n Shares of Tesla declined over 2% after new car sales in Germany and the U.K. hit two-year lows, despite growing demand for electric vehicles. Tech stocks like Nvidia and Meta also fell, along with Goldman Sachs, which pulled the Dow lower.<\/p>\n <\/p>\n Markets are also focused<\/a> on the Federal Reserve, which kicked off its two-day policy meeting Tuesday. The central bank is widely expected to hold rates steady, with futures markets pricing in just a 2.7% chance of a rate cut.\u00a0<\/p>\n However, investors are looking for guidance from Chair Jerome Powell on how the Fed is interpreting the economic impact of renewed tariff tensions.<\/p>\n While service sector data released Monday showed surprising strength, market participants remain concerned about the longer-term implications of Trump\u2019s evolving stance on trade.\u00a0<\/p>\n Hedge fund manager Paul Tudor Jones warned<\/a> that even partial tariffs could still act as significant tax increases, potentially shaving several percentage points off economic growth.<\/p>\n <\/p><\/div>\nFederal Reserve meeting<\/h2>\n