Markets Slide Amid Powell's Inflation Balancing Act

U.S. stocks closed lower on Tuesday, halting a three-session streak of record highs. Federal Reserve Chair Jerome Powell acknowledged the need to balance inflation concerns with a weakening job market, leading to uncertainty in interest rate decisions.

The Nasdaq led the decline, with Nvidia dropping 2.8% following news of a $100 billion investment in OpenAI. Tech giants Amazon, Microsoft, and Apple also dipped. Despite indications of possible future cuts, Powell did not specify a timeline, prompting a market sell-off.

A decline across the board was offset by Boeing's gains after an order from Uzbekistan Airways. Micron Technology also saw a minor rise post-market with an optimistic forecast. Overall, declining issues outnumbered advancers, evidencing a cautious market.