NEW YORK, New York - U.S. stocks weakened across the board on Tuesday, led by the tech sector once more. "I would say that the largest consideration is the fact that we've had the swoon related to the introduction of tariffs, the furious rally associated with the de-escalation of those tariff implementations, and now we're awaiting clarification as many of these negotiations are ongoing," Bill Northey, investment director at U.S. Bank Wealth Management, told CNBC Tuesday.

U.S. Market Performance

The Standard and Poor's 500 (^GSPC) declined 23.14 points, or 0.39 percent, to close at 5,940.46, with trading volume reaching 2.522 billion shares. The retreat marked the index's second consecutive daily loss as investors weighed fresh economic data.

The Dow Jones Industrial Average (^DJI) fell 114.83 points, or 0.27 percent, ending at 42,677.24 on moderate volume of 435.87 million shares.

Technology stocks led the Nasdaq Composite (^IXIC) lower Tuesday with the index dropping 72.75 points, or 0.38 percent, to settle at 19,142.71. Trading activity remained brisk at 7.978 billion shares.

Market Drivers

Analysts attributed the divergence to:

• Sector rotation favoring Canadian resource stocks

• Cautious positioning ahead of Wednesday's U.S. inflation report

• Mixed earnings reports from major retailers

Foreign Exchange Markets on Tuesday See Divergent Performances on Tuesday

The global foreign exchange market saw another off day for the dollar trading on Tuesday, with the euro and British pound gaining against the U.S. dollar, while the Australian dollar and Swiss franc weakened.

Key Currency Movements

The euro (EUR/USD) rose 0.35 percent to 1.1280, extending its recent recovery as traders weighed the European Central Bank's policy outlook.

The British pound (GBP/USD) also advanced, climbing 0.21 percent to 1.3388, supported by stronger-than-expected UK economic data.

In contrast, the U.S. dollar (USD/JPY) dipped 0.23 percent against the Japanese yen, trading at 144.51, as risk sentiment softened in Asian markets. The greenback also lost ground against the Canadian dollar (USD/CAD), falling 0.26 percent to 1.3913 amid rising oil prices.

Swiss Franc and Commodity Currencies Weaken

The U.S. dollar (USD/CHF) saw a notable gain against the Swiss franc, rising 0.60 percent to 0.8294, as traders adjusted positions ahead of Swiss inflation data.

Commodity-linked currencies struggled, with the Australian dollar (AUD/USD) dropping 0.56 percent to 0.6419 following weaker iron ore demand. The New Zealand dollar (NZD/USD) also edged down 0.16 percent to 0.5919, pressured by softer dairy export prices.

Market Outlook

Analysts attributed the dollar's mixed performance to shifting expectations on Federal Reserve rate cuts, with traders awaiting key U.S. inflation data later this week.

Global Markets Close Mixed on Tuesday; European and Asian Indices Show Gains

 Global stock markets ended Tuesday's session with mixed performances, as European and select Asian indices posted gains while some benchmarks in Asia and the Middle East faced declines.

Canadian Market Outperforms

In contrast to its U.S. counterparts, Canada's S&P/TSX Composite index (^GSPTSE) gained 83.70 points, or 0.32 percent, closing at 26,055.63. The advance came on volume of 278.315 million shares, with energy and materials sectors contributing to the positive performance.

UK and Europe Leads Gains

The FTSE 100 (^FTSE) in London climbed 81.81 points, or 0.94 percent, closing at 8,781.12, buoyed by strong performances in the financial and energy sectors.

Germany's DAX (^GDAXI) rose 101.13 points, or 0.42 percent, settling at 24,036.11, while France's CAC 40 (^FCHI) advanced 58.79 points, or 0.75 percent, to 7,942.42.

The broader EURO STOXX 50 (^STOXX50E) added 27.42 points, or 0.51 percent, ending at 5,454.65, and the Euronext 100 (^N100) gained 10.31 points, or 0.65 percent, closing at 1,603.52.

In Belgium the BEL 20 (^BFX) was among the top performers, jumping 42.33 points, or 0.95 percent, to 4,504.79.

Asia-Pacific & Southeast Asian Markets Mixed

In Asia, Hong Kong's Hang Seng Index (^HSI) surged 348.76 points, or 1.49 percent, to 23,681.48, marking one of the strongest gains in the region.

Japan's Nikkei 225 (^N225) edged up 30.86 points, or 0.08 percent, to 37,529.49, while in China, the SSE Composite (000001.SS) rose 12.90 points, or 0.38 percent, to 3,380.48.

Australia's S&P/ASX 200 (^AXJO) rose 48.20 points, or 0.58 percent, to 8,343.30, while the All Ordinaries (^AORD) added 48.60 points, or 0.57 percent, reaching 8,573.40.

In New Zealand the S&P/NZX 50 (^NZ50) edged up 15.16 points, or 0.12 percent, to 12,644.23, and Singapore's STI Index (^STI) saw a modest gain of 6.30 points, or 0.16 percent, closing at 3,882.50.

However, India's S&P BSE SENSEX (^BSESN) dropped 872.98 points, or 1.06 percent, to 81,186.44, weighed down by profit-taking in banking stocks.

In Indonesia the IDX Composite (^JKSE) fell 46.49 points, or 0.65 percent, to 7,094.60, while Malaysia's FTSE Bursa Malaysia KLCI (^KLSE) slipped 7.27 points, or 0.47 percent, to 1,548.87.

In South Korea the KOSPI (^KS11) dipped slightly by 1.62 points, or 0.06 percent, to 2,601.80, and Taiwan's TWSE (^TWII) inched up just 2.20 points, or 0.01 percent, to 21,526.03.

Middle East and Africa

Israel's TA-125 (^TA125.TA) declined 10.52 points, or 0.39 percent, to 2,684.20, while Egypt's EGX 30 (^CASE30) climbed 273.50 points, or 0.87 percent, to 31,629.30, supported by strong trading volumes.

South Africa's Top 40 USD Net TRI Index (^JN0U.JO) gained 52.77 points, or 1.04 percent, closing at 5,109.22.

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