The Dow Jones Industrial Average dropped for a second day on Tuesday as investor sentiment cooled at the start of the second quarter. The 30-stock average fell nearly 400 points, while the S&P 500 Index and Nasdaq Composite lost 0.7% and 1%, respectively.

Here's how the market settled on Tuesday:

S&P 500 Index (SPY  ): -0.72% or -37.96 points to 5,205.81

Dow Jones Industrial Average (DIA  ): -1.00% or -396.61 points to 39,170.24

Nasdaq Composite Index (QQQ  ): -0.95% or -156.38 points to 16,240.45

Zoom In:

Market participants were concerned with the language Federal Reserve officials used on Tuesday, signaling that while they expect interest rate cuts this year, the timeline of those cuts its still to be determined.

San Francisco Federal Reserve President Mary Daly said Tuesday that she still expects three interest rate cuts this year, but that is a "projection, and a project is not a promise."

"There is a path in my mind where interest rates start to adjust this year. We're just not there yet," she added.

Cleveland Fed President Loretta Mester said in prepared remarks on Tuesday that: "I continue to think that the most likely scenario is that inflation will continue on its downward trajectory to 2 percent over time. But I need to see more data to raise my confidence."

On the Economic Front:

Job openings were little changed in February, the Labor Department reported Tuesday, as the ratio of positions to available workers continued to decline month-to-month. The monthly Job Openings and Labor Turnover Survey (JOLTS) showed open positions totaled 8.76 million last month, coming in-line with expectations and rising about 8,000 from January's print.

Beneath the headline, the ratio of available workers to open positions declined to 1.35 from 1.43 in January, falling from its March 2022 peak of more than 2 to 1.

In the News:

Tesla (TSLA  ) shares fell on Tuesday after the electric vehicle maker reported its first annual delivery decline since 2020, delivering and producing 386,820 and 433,371 vehicles, respectively in the first quarter. Analysts had expected deliveries to total about 457,000 for the quarter, according to FactSet.

The company said in a statement that the "decline in volumes was partially due to the early phase of the production ramp of the updated Model 3 at our Fremont [California] factory and factory shutdowns."

The surprising drop in delivers even impacted the views of long-time Tesla bulls, including Wedbush's Dan Ives, who said in a note to clients on Tuesday: "while we were anticipating a bad 1Q, this was an unmitigated disaster 1Q that is hard to explain away."

SLB (SLB  ) shares were under pressure after the oilfield services company announced it will acquire oilfield equipment market ChampionX (CHX  ) for $7.7 billion in an all-stock deal, halting trading of the latter briefing during the session. The deal is expected to close before the end of 2024.

"This presents a significant opportunity for service providers who can partner with customers throughout the entire production lifecycle, offering integrated solutions and delivering differentiated value," SLB CEO Olivier Le Peuch said in a statement.

For Wednesday:

Market participants will react to March's ADP employment report, as well as more Fedspeak that includes remarks from Fed Chair Jerome Powell.