US equity markets closed sharply lower on Tuesday, with technology-heavy indices leading the decline.

The Nasdaq Composite fell 2.21% to close at 25,587.04, while the broader S&P 500 dropped 1.44% to 7,365.46.

The Dow Jones Industrial Average posted a more modest loss of 0.09%, shedding 45.87 points.

Selling pressure was concentrated in the artificial intelligence and semiconductor sectors, which weighed heavily on the tech-heavy Nasdaq.

Major AI stocks faced significant headwinds, driving the index's steepest losses.

The decline extended a broader downturn across US equities, with technology names bearing the brunt of the sell-off.