Stocks resumed their broad market sell off on Tuesday after two back-to-back positive sessions as the S&P 500 Index nears correction territory again. The broader market index traded nearly 1% lower and is about 8% below its recent record high. The Dow Jones Industrial Average also declined over 260 points and the tech-heavy Nasdaq Composite dropped about 1.7%.

Here's how the market settled on Tuesday:

S&P 500 Index (SPY  ): -1.06% or -60.45 points to 5,614.66

Dow Jones Industrial Average (DIA  ): -0.62% or -260.32 points to 41,581.31

Nasdaq Composite Index (QQQ  ): -1.71% or -304.54 points to 17,504.12

The S&P 500 officially entered correction territory, a term used to describe an index declining at least 10% from a recent high, last week, but made a considerable recovery rally throughout Friday's and Monday's sessions. The Nasdaq is also still in a correction, as market participants rotate out of growth stocks amid market uncertainty.

Investors are now turning their attention towards the Federal Reserve's two-day policy meeting that starts Tuesday, with focus on how the central bank and Fed Chair Jerome Powell will respond to President Donald Trump's tariff policies and their risks to the economy. Federal Open Market Committee members are widely expected to hold interest rates at their current level in their decision on Wednesday.

"Powell post-FOMC will have to reassure markets growth remains healthy and inflation's trajectory still points to 2% as confidence is wavering amid stagflation worries, or outright recession fears," Evercore ISI analyst Julian Emanuel wrote in a note to clients on Sunday.

"With regards to growth (the 'stag' part of stagflation), Powell will need to reconfirm his recently articulated certainty that the 'hard' data remains supportive, even as the 'soft' data is weak," Emanuel added. "On the 'flation' part of stagflation, Powell must indicate inflation remains on its path to 2%, even amidst potential near-term hurdles."

In the News:

Google (GOOG  ) (GOOGL  ) announced Tuesday that it has signed a "definitive agreement" to acquire cloud security startup Wiz in a $32 billion, all-cash deal. The acquisition, the search engine's largest ever, will boost the company's security technology related to artificial intelligence and cybersecurity threats. The deal is expected to close in 2026.

"Google Cloud is a leader in cloud infrastructure, with deep AI expertise and a track record of industry-leading security innovation," Google said in a release. "Bringing all this to Wiz will help make their solutions even better and more scalable, benefiting customers and partners across all major clouds."

On the Economic Front:

U.S. Housing Starts came it at a higher-than-expected rate in February as mortgage rates ticked lower, the Commerce Department reported Tuesday. Mortgage rates declines about 0.3 percentage points during the month, according to data from Freddie Mac.

New construction of privately owned homes rose 11.2% from January to a seasonally adjusted annual rate of 1.5 million. On the permits side, new building permits totaled 1.46 million for the month, 1.2% below January's level, and housing completions totaled 1.58 million, a 4% decline month-to-month.