US equity markets closed mixed on Tuesday, with the Nasdaq Composite underperforming the Dow Jones Industrial Average as selling pressure in the semiconductor sector dragged on tech-heavy indices.
The divergence highlighted a risk-off tilt among growth stocks as investors digested mixed economic signals ahead of a pivotal Federal Reserve meeting.
The semiconductor sector faced renewed headwinds, contributing to the Nasdaq's relative weakness.
While the broader market managed to hold steady, the tech-heavy index struggled to find footing, reflecting broader concerns about valuation multiples in a rising-rate environment.
The Dow's resilience suggested that defensive and value-oriented names were attracting safe-haven flows, even as growth stocks faced selling pressure.
Market sentiment remains fragile ahead of the Federal Reserve's policy announcement on Wednesday.