The Dow Jones Industrial Average decreased 58.13 points, or 0.18 percent, to 32,774.41. The S&P 500 fell 17.59 points, or 0.42 percent, to 4,122.47. The Nasdaq Composite Index was down 150.53 points, or 1.19 percent, to 12,493.93.
Seven of the 11 primary S&P 500 sectors ended in red, with consumer discrepancy and technology down 1.54 percent and 1 percent, respectively, as the top two losers. Meanwhile, energy gained 1.77 percent, as the best-performing group on Tuesday.
U.S. memory chipmaker Micron Technologies warned Tuesday that its revenues in the current quarter could be less than or near the lower end of earlier guidance range due to macroeconomic factors and supply chain constraints.
The downward adjustment of revenues guidance by Micron Technologies together with a similar move by Nvidia added up worries about the outlook of the semiconductor sector.
Moreover, the share price of vaccine developer Novavax tanked nearly 30 percent on Tuesday after the company slashed its revenues guidance for 2022 by around 50 percent.
"The S&P 500 fell a bit during the trading session on Tuesday to show signs of hesitation and now looks likely to drop down to the 4,100 level," said Christopher Lewis, analyst with market information platform FX Empire.
Lewis noted investors may book profits after a significant rally recently, and the latest U.S. consumer price index (CPI) to be released on Wednesday also weighed on the market.
The U.S. headline CPI, which includes energy and food, is expected to dip to 8.7 percent from June's reading of 9.1 percent, according to Dow Jones estimates.
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