Stocks fell for a second session Tuesday, as steep declines in major tech names such as Apple dragged the broader market further from record highs recently reached.

The Nasdaq Composite pulled back by 1.65% to 15,939.59 as technology stocks felt the brunt of the market's drop. The Dow Jones Industrial Average lost 404.64 points, or 1.04%, to 38,585.19. The S&P 500 dipped 1.02%, closing at 5,078.65.

Apple slipped almost 3% on the back of a report from Counterpoint Research that found iPhone sales plunged in China in the first six weeks of 2024.

Several other mega-cap technology stocks including Netflix and Microsoft shed close to 3%, while Tesla dropped nearly 4%. The S&P 500's information technology sector led the broad index down with a loss of more than 2%.

Outside mega-cap tech, GitLab tumbled 21% after the software company posted a weak forecast for the full year. Intel and Salesforce were the worst performers in the Dow, with each retreating by more than 5%.

"The taller they grow, the harder they fall," said Scott Ladner, CIO at Horizon Investments, of struggling tech stocks. "What's going on today, internally, is the stuff that has been winning all year long is the stuff that's getting sold."

Beyond tech, Target jumped 12% after holiday-quarter earnings came in stronger than Wall Street forecasted. AeroVironment rallied almost 28% following a better-than-anticipated quarterly report and outlook from the defense company.

Tuesday's moves come as investors continue to digest the market's recent rally to all-time highs, which has been powered by optimism around artificial intelligence. Despite the losses in the past two sessions, the three major averages are solidly higher year to date.

Bitcoin was the latest asset to hit a record, notching an all-time high on Tuesday. However, the digital currency quickly moved into the red after surpassing the peak for the first time in two years.

Oil prices tick lower after China growth pledge, OPEC+ production cuts fall flat with traders

Crude oil futures edged lower Tuesday as China's pledged to boost economic growth and OPEC+ decision to extend its production cuts fell flat with traders.

The West Texas Intermediate contract for April shed 59 cents, or 0.75%, to settle at $78.15 a barrel. May Brent futures lost 76 cents, or 0.92%, to settle at $82.04 a barrel.

The Beijing government on Tuesday set an economic growth target of about 5% for 2024 and announced the issuance of $138.9 billion in "ultra-long" special treasury bonds to fund major projects.

OPEC and its allies, OPEC+, agreed on Sunday to extend crude production cuts of 2.2 million barrels per day through the second quarter.

— Spencer Kimball

Stocks finish lower

Stocks closed Tuesday's session lower, marking a second day of losses.

The Dow and S&P 500 each lost around 1%, while the technology-heavy Nasdaq Composite dropped nearly 1.7%.

— Alex Harring

Nasdaq 100 tracks for worst session since October

The concentrated Nasdaq 100 index lost more than 2% on Tuesday, making it poised to see its biggest loss in a session since late October.

The index is down about 2.1%. If that holds through session close, it will be the worst day for the index since Oct. 25, when it lost 2.5%.

— Alex Harring, Chris Hayes

Magnificent 7 stocks, semiconductors among Nasdaq-100's worst performers

Technology stocks underperformed on Tuesday, pushing the Nasdaq Composite and concentrated Nasdaq 100 down about 2.5% each.

A slew of "Magnificent 7" stocks were among the worst performers, with Tesla last down more than 4%. Apple and Microsoft shed about 3% each, while Amazon and Meta Platforms lost about 2%.

Semiconductor and software stocks also lagged, with CrowdStrike, Intel, Datadog and MondoDB slumping at least 6% each. Adobe, Broadcom, On Semiconductor and Globalfoundries dropped at least 4%, while Advanced Micro Devices declined about 1.6%

— Samantha Subin

45 stocks in the S&P 500 hit new 52-week highs

Despite Tuesday's tech-led equity selloff, 45 stocks within the S&P 500 hit new 52-week highs.

Here are some of the names that hit the milestone:

• Disney
• eBay
• T-Mobile US (new all-time high)
• Chipotle Mexican Grill (new all-time high)
• Goldman Sachs
• Boston Scientific (new all-time high)
• General Dynamics (new all-time high)
• L3Harris Technologies
• Sherwin Williams
• NRG Energy (new all-time high)

Six stocks also reached new 52-week lows. These include:

• Charter Communications
• Fox Corporation Class B
• Paramount
• Warner Bros. Discovery
• Humana
• C.H. Robinson Worldwide

— Lisa Kailai Han, Christopher Hayes

Timing looks right for Costco to raise its membership fee

Costco is overdue for an increase in its membership fee, but the timing is looking right, according to Gordon Haskett analyst Chuck Grom. Typically, this fee has been hiked every 66 months, but high inflation and an uncertain economy put the company in a holding pattern.

"Indeed, it has now been 84 months since the last increase. But with overall inflation moderating (including some general merchandise categories turning deflationary) and moving closer to historical levels, we believe the probability of a fee increase rises with each passing month," Grom wrote in a research note.

He said an increase would help earnings growth, though it could be offset by some temporary discounting the retailer does to remind its members of the value it offers.

Costco shares have risen nearly 16% since the start of the year, and the stock is trading around its 52-week high, and is approaching Grom's price target of $775.

—Christina Cheddar Berk

Tesla stock slides on weak China sales, Berlin factory shutdown

Weighed down by brewing overseas troubles, shares of Tesla slid nearly 5% by early afternoon during Tuesday's trading session.

The electric vehicle maker's losses were compounded by declining sales in China.

"Tesla's China-made vehicle sales of ~60.4k vehicles were down 19% YoY in February from ~74.5k vehicles in the prior year, according to the China Passenger Car Association," wrote Deutsche Bank analyst Emmanuel Rosner in a Tuesday note.

However, the analyst supplied the caveat that these weak headline numbers were not solely limited to Tesla.

The company also faced a shutdown at a Berlin factory following a suspected arson attack. Production is not expected to resume this week, according to Tesla's Berlin factory head, as reported by Reuters.

— Lisa Kailai Han

Energy stocks buck market slide

Energy stocks in the S&P 500 were able to sidestep Tuesday's market downturn.

The sector was up more than 1% in afternoon trading. By comparison, the index as a whole fell around 1%.

APA, Baker Hughes, EQT and Devon Energy led the sector higher, each advancing around 2%. All stocks in the sector traded in the green.

Consumer staples, financials and utilities were the only other of the index's 11 sectors to see gains in the session.

— Alex Harring

Major indexes shed 1%

The three major indexes all traded down at least 1% in afternoon trading.

Shortly after 2 p.m. ET, the Dow and S&P 500 both dropped just over 1%. Meanwhile, the technology-heavy Nasdaq Composite slid 1.8%.

— Alex Harring

Sports product maker tumbles on back of earnings

Amer Sports, the business behind Wilson tennis rackets and Lousiville Slugger baseball bats, dropped nearly 7% following its first earnings report after going public.

The company, which went public via an initial public offering last month, said it lost 25 cents per share on $1.32 billion in revenue. CNBC didn't compare its results against Wall Street estimates given that it's the first report as a publicly traded firm.

— Alex Harring, Gabrielle Fonrouge

Consumer discretionary, communication services stocks among worst performers

Communication services and consumer discretionary stocks were among the worst performers in the S&P 500, dragging down their respective sectors at least 2.5%.

Take-Two Interactive and Netflix were the worst-performing communication services stocks, falling 2.9% and 2.6%, respectively. Meta Platforms and Alphabet fell less than 1% each.

Tesla weighed on the consumer discretionary sector, dropping 4.6%. Best Buy, Amazon and Bath & Body Works each fell about 2%.

Information technology was another underperforming sector last down more than 2%. Qorvo, Intel, Salesforce and Synopsys all dropped at least 4%. Apple, and Microsoft also weighed down the sector, dropping 2.6% each. ServiceNow fell nearly 5%.

— Samantha Subin

Apple, Target among Tuesday's biggest moves

These are the stocks making the biggest moves during midday trading:

• Apple — Apple dropped about 3%. Counterpoint Research said that iPhone sales in China sank 24% during the first six weeks of 2024 versus the same period a year ago.
• Target — Target surged nearly 12% after the retailer topped Wall Street's fourth-quarter estimates.
• Tesla — The electric vehicle maker sank nearly 5% after a suspected arson attack at a nearby electricity substation stopped production at its Berlin gigafactory.

Read the full list of stocks on the move here.

— Samantha Subin

Ark Innovation ETF drops 3%

Cathie Wood's flagship Ark Innovation ETF (ARKK) shed more than 3% Tuesday as the technology sector bore the brunt of the sell-off on Wall Street.

SoFi was the worst performer in the fund as of midday trading, down over 13% after the firm announced offering of a $750 million convertible senior notes due 2029. Ark Invest had just added 782,646 shares of SoFi to another fund Ark Fintech Innovation ETF (ARKF).

Also leading the losses was Tesla, ARKK's second biggest holding. Tesla shares slipped 4.5% Thursday after a suspected arson attack halted production at its Berlin Gigafactory.

ARKK holdings Ginkgo Bioworks, PagerDuty, Prime Medicine, Twilio, UiPath and Archer Aviation were all down at least 5%.

— Yun Li

Tech sell-off hurts Dow

Investors wondering what's dragging on the Dow need to look no further than its technology names.

The blue-chip average fell 0.7%, a relatively muted drop compared with the other two major averages. A chunk of that downward pressure was tied to the tough session for tech stocks.

Intel led the 30-stock index down with a drop of more than 4%. Salesforce slipped more than 3%, while Apple and Microsoft lost more than 2% each. Amazon was the fifth worst performer, lower by more than 1.5%.

To be sure, about two-thirds of stocks in the average traded in the red. On the other end of the spectrum, 3M and Walmart led the small group able to buck the trend, with each rising more than 1%.

— Alex Harring

Lithium producer Albemarle plunges after announcing share offering

Albemarle shares plunged more than 11% Tuesday after the lithium producer announced it would raise capital by offering $1.75 billion in shares.

Albemarle said in statement Monday that it would use the proceeds form the share offering to construct and expand lithium operations in Australia and China.

Lithium is a key component used in electric vehicle batteries. Battery metal prices, including lithium, have plunged over the past year.

Lithium carbonate prices in China traded at about 108,500 yuan ($15,076) on Tuesday, down nearly 70% from the same period a year ago.

— Spencer Kimball

Aerospace and defense ETF hits intraday all-time high

The iShares U.S. Aerospace & Defense ETF (ITA) rose 0.3% during Tuesday's session to notch a new all-time intraday high dating back to its 2006 inception.

AeroVironment led the fund higher, surging nearly 25% on the back of strong earnings and guidance. V2X was another big gainer, last up more than 10%.

The ETF is up a little over 2% since the start of the year.

— Samantha Subin, Gina Francolla

Bitcoin hits record above $69,000

Bitcoin climbed to an all-time high on Tuesday, topping $69,000 and breaking a previous record set in 2021. The cryptocurrency hit a high around $69,210, according to Coin Metrics. It was last up about 1% at $68,307. The move comes amid excitement around bitcoin ETFs and the upcoming halving event.

— Fred Imbert

ISM services index declines amid sharp drop in prices measure

Services industries reported slightly slower than expected activity for February but also saw a substantial drop in expected price increases, according to an Institute for Supply Management index released Tuesday.

The ISM services index nudged lower to 52.6, slightly below the Dow Jones estimate for 53 and less than the January reading of 53.4. The index measures the percentage of businesses reporting expansion, so anything below 50 indicates contraction.

On the inflation front, the prices index fell sharply, down to 58.6, a decline of 5.4 points though still indicating growth. An earlier reading on the manufacturing sector also showed a slight deceleration in expected price increases.

New export orders, imports employment and inventory sentiment also posted declines while ew orders and business activity rose. Treasury yields moved lower following the release.

—Jeff Cox

UBS says investor euphoria isn't as bad as the dot-com bubble

Investor euphoria "isn't close" to where it was before the dot-com bubble burst in the late 1990s, according to UBS.

Additionally, the firm sees reason to stay positive on future market performance, even as the major indexes sit near record highs.

"While there are always economic and market risks, and the climb higher for risk assets may slow, we see evidence that supports a positive near- and medium-term outlook," firm leaders wrote to clients early Tuesday.

— Alex Harring

Stocks open lower

The three major indexes opened Tuesday's session lower, placing the market on track for another down day.

The Dow was was down 0.3% shortly after opening bell. The S&P 500 slipped 0.4%, while the Nasdaq Composite shed 0.8%.

— Alex Harring

Nearly 1 out of 5 S&P 500 stocks hit 52-week highs Monday

hough Monday was a slightly down day for the S&P 500, there's a silver lining when looking at individual member performance.

About 19.5% of stocks in the broad index — or nearly one out of every five members — posted new 52-week highs during Monday's session. This large group of stocks included major names such as Nvidia, Disney, Meta, Costco, JPMorgan and Eli Lilly.

— Alex Harring

See the stocks making premarket moves

Here are some of the names moving before the bell:

• Tesla — Shares lost 3%. The EV maker halted production at its Berlin plant Tuesday after a power outage due to a nearby substantiation fire, Reuters reported, citing a German newspaper.
• Microstrategy — The bitcoin development company shed 3.3% after the announcing a private offering for $600 million in convertible senior notes. Microstrategy plans to use the proceeds to buy more bitcoin and for general corporate purposes.
• Albemarle — Shares sank more than 7.7% following the announcement of its plans to sell $1.75 billion of depository shares to fund growth capital expenditures, among other uses.

To see more stocks making premarket moves, read the full story here.

— Michelle Fox

Cyclical value stocks could catch up to growth this year, Stifel says

Stifel sees a recovery in the cards for cyclical value stocks this year.

"In our view, market to broaden and Value to rally relative to over-valued Growth, with a setup similar to 1H99 during the prior (late-1990s) Tech Bubble," Barry Bannister, the bank's chief U.S. equity strategist, wrote in a note.

Bannister added that solid economic growth and sticky inflation are more rewarding for these cyclical value stocks — which should rally in the first half of 2024 — than they are for growth names, which could top sometime this year. More specifically, cyclical value stocks include industries such as banks, capital goods, energy, financial services, insurance, materials, real estate and transports, the strategist underscored.

— Lisa Kailai Han

Apple slides after firm reports weak iPhone sales in China

Apple shares slipped around 2% in Tuesday premarket trading after an investment firm reported soft iPhone sales in China at the start of this year.

Counterpoint Research said in a note to clients that sales of the iconic smartphone tumbled 24% in China during the first six weeks of 2024. It comes as the technology titan faces competition from a bevy of local phone makers.

That adds to recent woes for Apple stock coming off a strong 2023. Shares have slipped more than 3% so far in March and over 9% in 2024.

— Alex Harring, Ryan Browne

Jeremy Siegel doesn't think U.S. stocks are in a bubble either

Add Jeremy Siegel to the Wall Street crowd that says the current stock market is not reminiscent of the dot com internet euphoria of the late 1990s.

Siegel, senior economist at WisdomTree, emeritus professor of finance at the Wharton School of the University of Pennsylvania and author of Stocks for the Long Run, said in his weekly commentary that he agrees with those on Wall Street who argue U.S. stocks are not in a bubble.

Siegel wrote that he met last week with 91-year-old economist Burton Malkiel, author of 1973's seminal A Random Walk Down Wall Street. Malkiel was, "remarkably sharp, and we agreed on almost everything regarding the economy and the stock market," wrote Siegel, himself 78. Malkiel "is a little bit more worried than I am that we're currently at the beginning of a bubble like 1996-97. I say it's possible we will get there, but at this point we are not in a bubble," Siegel wrote.

Siegel's take on the current market was sanguine and straightforward: "For the equity markets, I think investors should 'make the trend your friend' and don't fight the tape — which has been consistently higher," he said.

— Scott Schnipper

Target shares pop after earnings

Target reported better-than-expected earnings and revenue for the fourth-quarter, sending shares higher by 7%.

The retailer reported earnings per share of $2.98, excluding items, on revenue of $31.92 billion. Analysts polled by LSEG expected a profit of $2.42 per share on revenue of $31.83 billion. To be sure, the company issued lackluster guidance for the year ahead.

— Fred Imbert

AMD falls after report of regulatory snag on made-for-China AI chip

Shares of AMD were down more than 2% in the premarket after Bloomberg News reported the Commerce Department did not clear a chip intended to be sold in China.

The report said that, despite AMD making the chip for lower performance than its premium products, the department still found it too advanced for sale in China.

— Fred Imbert

Shares of Tata Motors climb over 7% after news it will split commercial and passenger vehicle arms

Shares of Indian automaker Tata Motors climbed more than 7% on Tuesday, a day after the company announced it will separate its commercial vehicle and passenger vehicle units in a demerger.

Tata Motors said the split will be implemented through a scheme of arrangement, and all shareholders will continue to have identical shareholding in both the listed entities.

The move will "further empower the respective businesses to pursue their respective strategies to deliver higher growths with greater agility while reinforcing accountability," the company said.

The demerger is expected to be completed in 12 to 15 months, subject to shareholder, creditor and regulatory approvals. It should not have an adverse impact on employees, customers, and our business partners, the company said.

— Lim Hui Jie

China defense stocks jump as country announces 7.2% rise in defense spending

China is set to increase its defense spending by 7.2% in 2024, Reuters reported Tuesday, citing the official government release as the country's annual parliamentary meetings started in Beijing.

This follows a 7.2% increase last year, a 7.1% spike in 2022, 6.8% increase in 2021, 6.6% growth in 2020 and 7.5% rise in 2019.

The CSI Defense index jumped 2.2% to its highest level since Jan.15. Shenzhen-listed Fujian Torch Electron rose 1.1%, Aerospace CH UAV added 3.7%, Avic Shenyang Aircraft Co gained 2% and Avic Aviation High Technology gained 1.3%.

— Shreyashi Sanyal

China services activity expands at a slower pace in February: Caixin survey

China's services sector expanded at a slower pace in February compared with January, with the Caixin services purchasing managers' index slipping to 52.5 in February from 52.7 in the prior month.

The report noted that employment rose slightly for a second straight month, and companies were generally upbeat about the 12-month outlook for activity.

A PMI reading above 50 indicates expansion in the sector, while one below 50 indicates contraction.

— Lim Hui Jie

Gold futures cross $2,100 to hit record levels, spot rates inch closer to all-time highs

Spot gold prices hovered near record levels, while futures settled at an all-time high on Monday.

Traders bet the U.S. Federal Reserve will start cutting interest rates in the second half of the year, lifting prices of the precious metal.

The gold contract for April gained $30.60, or 1.46%, to settle at $2,126.30 per ounce, the highest level dating back to the contract's creation in 1974.

Spot gold prices inched 0.16% lower on the day, trading at $2,111.69, just shy of a record high at 2,135.40 which it hit in December 2023.

— Shreyashi Sanyal, Spencer Kimball

Utilities stand out in otherwise downbeat day for stocks

The three major averages cooled off from the market rally Monday, but it was utilities' time to shine.

The utilities sector was the outperformer among the 11 sectors of the S&P 500, up 1.64%.

Though the likes of Dominion Energy and AES were the biggest winners – posting gains of about 4% each – a notable winner emerged in Constellation Energy. The stock gained 3.5% Monday, but has also shown considerable strength over the longer term: Constellation is up 50% in 2024, while the utilities sector is down nearly 1.7%.

CEG, which has a 0.8% dividend yield, remains well-liked among analysts, with more than 6 out of 10 analysts rating it buy, per FactSet. However, the average analyst price target suggests a decline of more than 10% from here.

-Darla Mercado, Ethan Kraft

Gold’s ascent lifts miners ETF to its best day in 2024

The VanEck Gold Miners ETF (GDX) popped 4.32% for its best performance in 2024, climbing as gold futures leapt over $2,100.

Gold futures for April ended Monday at $2,126.30 per ounce, rising more than 1% on the day and reaching the highest level since the contract was created in 1974.

Big winners in the ETF include Harmony Gold Mining Company, which advanced 14% and hit a 52-week high. Coeur Mining and Anglogold Ashanti both added more than 8%.

It was the third consecutive winning day for the GDX ETF.

-Darla Mercado, Gina Francolla

Investors should 'move on' from Apple, says Renaissance Macro Research

Apple shares are having a terrible start to 2024. With the tech giant is down 9% year to date, Renaissance Macro Research founder Jeff deGraaf advises investors to reconsider the stock.

"I think you want to move on from Apple tactically. This isn't about the next 30 years, this is about the next three to maybe 12 months," deGraaf told CNBC's "Closing Bell" on Monday.

The stock appears like it's distributing "and it looks like it's an elongated consolidation," deGraaf added.

— Hakyung Kim

'Best in class' retail brands are at an inflection point, JPMorgan analyst says

JPMorgan analyst Matthew Boss sees better times ahead for some "best in class" retail brands.

"I think we're hitting an inflection point for all of retail," Boss said during an interview on CNBC's "Closing Bell" Monday. "I think you're seeing an intentional consumer out there. They're shopping for brands. They want value and they want convenience."

According to Boss, this consumer mindset will put off-price retailers like T.J. Maxx-owner TJX Cos, Burlington and Ross Stores in a sweet spot as these stores sell well-known brands at a discount. He expects upbeat earnings from Ross Stores on Tuesday.

"But [consumers] also want destination as well as experience and service, and that is what Macy's right now is focused on ...," he said. Boss said he recently visited Macy's locations where new strategies are being tested and thought the stores had better staffing and were "amplifying" key brands.

In addition to the work the retailers are doing to improve their businesses, Boss anticipates that high-income consumers may feel freer to spend now that the stock market has been rallying.

—Christina Cheddar Berk

Stocks making the biggest moves after hours

Check out the stocks posting the biggest moves in postmarket trading.

GitLab — The software company declined more than 18% after issuing weaker-than-expected forward guidance. Gitlab forecasts full-year revenue to fall in a range between $725 million and $731 million. This came in below analysts' estimates of $732 million, according to LSEG. Profit estimates also missed expectations, with GitLab guiding between 19 cents to 23 cents, versus estimates of 35 cents. Meanwhile, the company posted a beat on top- and bottom-lines in the fourth quarter.

Stitch Fix — Shares fell 12.5% after the company posted disappointing results for the fiscal second quarter. The company posted an 18% year-over-year decrease in net revenue from continuing operations. Active clients also fell 17% from the previous year.

AeroVironment — Shares jumped nearly 19% after AeroVironment's third-quarter results topped analysts' estimates. The defense company posted adjusted earnings of 63 cents per share on $187 million in revenue. Analysts polled by LSEG had estimated 33 cents earnings per share and $171 million in revenue. AeroVironment also posted a higher-than-expected range for its full-year earnings and revenue estimates, citing increased global demand.

— Hakyung Kim

Stock futures open flat Monday

U.S. stock futures opened near the flatline on Tuesday.

Dow Jones Industrial Average futures inched down 0.1%. Futures tied to the S&P 500 and Nasdaq 100 ticked down 0.06% and 0.1% each.

— Hakyung Kim