New York – Stocks took a tumble on Tuesday as concerns grew among investors regarding the Federal Reserve’s potential delay in cutting interest rates. The Dow Jones Industrial Average saw a 395-point decline, equivalent to a 1% drop, following a more than 500-point downturn at its lowest point. Meanwhile, the S&P 500 closed the day down by 0.7% and the Nasdaq Composite experienced a loss of approximately 1%.

Market strategist Art Hogan from B. Riley Financial noted that there is a sense of profit-taking following a strong market performance, indicating a possible breather for the market. These declines follow the S&P 500’s record-breaking first quarter performance since 2019, with a notable 10.2% rise over the first three months.

Federal Reserve Chair Jerome Powell recently stated that rate cuts are not expected to happen in the immediate future, causing uncertainty among investors. Additionally, bond yields rose this week, with the 10-year Treasury yield reaching 4.37% on Tuesday, remaining at its highest level since the previous November.

Traders adjusted their expectations for a potential rate cut in June, reducing it to around 64% from over 70% the week prior according to the CME FedWatch Tool. The upcoming March jobs report is eagerly awaited, with economists predicting a decrease in job additions compared to February.

Health insurers are experiencing setbacks following the Biden administration’s release of final payment rates for Medicare Advantage and Medicare Part D drug coverage for 2025. Federal payments to Medicare Advantage plans are projected to increase by 3.7%, impacting companies like Humana, CVS Health, and UnitedHealth Group.

Tesla shares dipped by 4.9% on Tuesday after the company reported its first annual decline in sales since 2020. The electric vehicle maker continues to face challenges amidst escalating competition in the market. As the market settles post-trading, slight fluctuations in levels may occur.