U.S. stocks slipped slightly on Tuesday amid ongoing uncertainty regarding high tariffs, with declines in consumer goods and healthcare stocks, while banks reported positive results.
The S&P 500 Index dropped by 9.38 points, or 0.17 percent, closing at 5,396.59 points.
The Nasdaq Composite Index also declined by 10.30 points, or 0.06 percent, closing at 16,821.18 points.
The Dow Jones Industrial Average fell by 155.21 points, or 0.38 percent, to reach 40,369.58 points.
The quarterly results of companies, including Bank of America and Citigroup, contributed to the rise in financial sector stocks, leading to gains in the S&P 500 sector.
Bank executives warned that American consumer spending faces serious risks if the disruptions triggered by President Donald Trump's trade policy continue.
Trump announced a comprehensive tariff in April, which caused market disruptions and fueled fears of a global trade war and potential recession, and investors have been unable to focus on anything else since then.
Trump hinted at potential exemptions from the 25 percent tariffs imposed on imports of cars and their parts.
Canada announced on Tuesday that it would allow some exemptions for domestic automakers and manufacturers in specific sectors from retaliatory tariffs, provided they meet certain conditions.
The CEO of Johnson & Johnson stated that tariffs on drugs could disrupt the supply chain, and favorable tax policies would be a more effective tool to enhance American manufacturing capacity for both drugs and medical devices.