Key Takeaways

Major U.S. equities indexes fell Tuesday as concerns emerged about the sustainability of the recent market rally. The rally has been underpinned by increasing optimism about a reprieve on tariffs and an improvement in trade relationships.

The S&P 500 fell 0.4%, ending a string of six consecutive positive trading sessions. The Nasdaq also closed 0.4% lower, while the Dow was down 0.3%.

Shares of credit score provider Fair Isaac ( FICO ) tumbled 8.1%, posting the weakest daily performance in the S&P 500. The move lower followed comments from Bill Pulte, director of the Federal Housing Finance Agency (FHFA), who raised concerns about FICO's pricing and expressed support for more cost-effective credit evaluation options.

AES Corp. ( AES ) shares slipped 4.1% after Jefferies downgraded the power generator's stock to "underperform." Analysts cited the stock's high valuation, uncertainties surrounding the utility's credit rating, and the possibility of a less favorable outlook for the renewable energy business starting in 2027.

Analysts at Truist reduced their price target on shares of Norwegian Cruise Line Holdings ( NCLH ). The firm noted that slumping consumer confidence would affect demand for cruises, although it may take a quarter or two for earnings and other metrics to reflect the impact given extended booking periods. Shares of the cruise operator fell 3.9% on Tuesday.

Moderna ( MRNA ) shares surged 6.1%, gaining the most of any S&P 500 stock, after the Food and Drug Administration (FDA) issued new guidance related to COVID-19 vaccine boosters . The agency will require additional clinical data on vaccines for healthy individuals under age 65, but will continue to approve immunizations for those who are older or at higher risk. With seniors and high-risk groups accounting for a significant portion of annual COVID vaccinations, the updated framework does little to change the status quo for Moderna's key markets.

Shares of discount retailers Dollar Tree ( DLTR ) and Dollar General ( DG ) advanced 4.6% and 4.1%, respectively. The gains follow comments made last week by the CEO of Walmart ( WMT ), who indicated that elevated tariffs would result in price increases at the company's stores. The two competitors known for their bargain products could be in a good position to entice value-seeking consumers as price tags begin to reflect tariff impacts, analysts have said.

Regeneron Pharmaceuticals ( REGN ) stock closed 3.2% higher after the company agreed to purchase DNA testing company 23andMe in a bankruptcy court auction. Regeneron agreed to take measures to ensure the ethical use and security of 23andMe's customer data.

More news from the FDA helped lift shares of fellow biotech firm Incyte ( INCY ), which added 2.3% on Tuesday. Following a positive read-out from a Phase 3 trial, health regulators approved Incyte's immunotherapy Zynyz to treat a certain type of anal cancer. Incyte stock previously lost ground in March in the wake of uncompetitive trial results from an experimental skin disease treatment.

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