The broader market fell lower on Tuesday as market participants grew more pessimistic towards the health of the U.S. economy and global trade relations. The S&P 500 Index lost about 0.5%, while the tech-heavy Nasdaq Composite declined about 1.4%. The Dow Jones Industrial Average, meanwhile, rose over 160 points as investors rotated out of growth stocks.

Here's how the market settled on Tuesday:

S&P 500 Index (SPY  ): -0.47% or -27.90 points to 5,955.34

Dow Jones Industrial Average (DIA  ): +0.37% or +160.13 points to 43,621.34

Nasdaq Composite Index (QQQ  ): -1.35% or -260.54 points to 19,026.39

Consumer Confidence declined to 98.3 in February, the The Conference Board's consumer confidence index showed Tuesday, marking its largest monthly decline since August 2021 as concerns over the economy and inflation impacted outlooks.

"This is the third consecutive month on month decline, bringing the Index to the bottom of the range that has prevailed since 2022," said Stephanie Guichard, senior economist of global indicators at The Conference Board, in a statement.

Moreover, the 12-month inflation expectations rose to 6%, up from 5.2% in January and well above the Federal Reserve's target rate of 2%.

"This increase likely reflected a mix of factors, including sticky inflation but also the recent jump in prices of key household staples like eggs and the expected impact of tariffs," Guichard added. "There was a sharp increase in mentions of trade and tariffs, back to a level unseen since 20219. Most notably, comments on the current Administration and its policies dominated the responses."

On the Earnings Front:

Home Depot (HD  ) shares rose Tuesday after the home improvement retailer reported better-than-expected fourth-quarter results even as high interest rates and housing prices impacted consumer demand for bigger projects. CFO Richard McPhail told investors during Home Depot's earnings call that the retailer saw "some benefits from hurricanes that won't fully report in 2025," and the company assumes "continued pressure on larger projects," moving forward.

With that in mind, Home Depot's full-year outlook disappointed Wall Street analysts. Home Depot expects total sales to increase by 2.8% and comparable sales to rise by 1%. The company also sees adjusted earnings per share declining about 2% from $15.24 in 2024.

In the News:

PayPal (PYPL  ) held its first investor day in four years, laying out its plans Tuesday to expand Venmo to bring in $2 billion in revenue by 2027. CEO Alex Chriss told investors in New York that the company's new strategy for Venmo is part of a broader effort to restore consistent, profitable growth for the payments facilitator.

To better compete with Block's (XYZ  ) Cash App, Zelle and Apple Pay, PayPal plans to position Venmo as the default app that goes beyond peer-to-peer transactions to include spending, saving and becoming what the company calls the "go-to money movement app." To start, the company plans to focus more on its debit card and encouraging more merchants to use "Pay With Venmo" and is launching in-app features designed to keep funds on Venmo.

Apple (AAPL  ) shareholders on Tuesday rejected a request to end the company's Inclusion & Diversity program during their annual meeting, signaling that investors still see benefits from diversity programs. The proposal, submitted by the National Center for Public Policy Research, called for Apple to abolish its diversity, equity and inclusion (DEI) practices, citing that peer companies like Alphabet (GOOG  ) (GOOGL  ), Meta Platforms (META  ) and Microsoft (MSFT  ) have rolled back similar programs.

"Our strength has always come from hiring the very best people and then providing a culture of collaboration, one where people with diverse backgrounds and perspectives come together to innovate and create something magical for our users," CEO Tim Cook said in a statement.