U.S. equities fell on Tuesday, with financials lagging, as uncertainty around President-elect Donald Trump's policies grew.
"I't not about proposals anymore ... but what are they going to do," said Brent Schutte, chief investment strategist at Northwestern Mutual Wealth Management. "I think investors are at a pause trying to figure out what's next." He also said he is positive about U.S. equities, noting underlying global economic growth has been overlooked.
The Dow Jones industrial average closed about 60 points lower after briefly falling 100 points, with Goldman Sachs and JPMorgan Chase contributing the most losses. The S&P 500 fell 0.3 percent, with financials dropping more than 2 percent.
"The [S&P 500] remains bound by a consolidation phase that reflects an indecisive market as we approach the inauguration," said Katie Stockton, chief technical strategist at BTIG, in a note. "We believe the risk is greater to the downside in the near term, and would be wary of a breach of the lower boundary of the range near 2250."
The Nasdaq composite declined 0.6 percent, while the small-caps Russell 2000 dropped 1.44 percent.
"You don't know what's going to happen. So it's hard to reposition into this or that," said Jeff Layman, partner at BKD Wealth Advisors.
Trump criticized a proposed corporate tax plan from the House of Representatives, labeling the plan as "too complicated," in an interview with The Wall Street Journal.
The stock market has soared since the election partially on hopes of corporate tax reform, deregulation of certain sectors and more government spending. Trump's inauguration is scheduled for Friday.