The Dow Jones Industrial Average lost 66.77 points, or 0.19 percent, to 34,297.73. The S&P 500 decreased 53.68 points, or 1.22 percent, to 4,356.45. The Nasdaq Composite Index sank 315.83 points, or 2.28 percent, to 13,539.29.
Nine of the 11 primary S&P 500 sectors ended in red, with technology and communication service sectors led the laggards, down 2.34 percent and 2.23 percent, respectively. Meanwhile, energy and financial sectors bucked the trend gaining 3.96 percent and 0.47 percent, respectively.
The three index stocks suffered a deep dive in the morning session but saw losses largely pared in the afternoon session.
Multiple macroeconomic indicators issued on Tuesday worsened and dampened market sentiment.
The U.S. consumer confidence index stood at 113.8 in January down from 115.2 in December, but higher than market expectation of 111.9, according to data issued by the Conference Board on Tuesday morning.
The Richmond Fed manufacturing index for January weakened to 8 from 16 in December while the consensus of market expectation stays at 14.
The intra-day S&P 500 relief rally on Monday was a "head fake" and correction will continue, Barry Bannister, head of institutional equity strategy with U.S. brokerage and investment banking firm Stifel, said on Monday.
The U.S. stock market would probably hit a market low late in the first quarter of 2022 and none of a few signs required for that to happen are in the offering, according to Bannister.
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