Meanwhile, investors are looking ahead to President Trump's speech to a joint session of Congress in the evening. He's expected to discuss his bigger plans for defense and stimulus spending. He's also expected to address repeal and replacement of the Affordable Care Act, but markets are most interested in what he has to say about tax reform.
"Everyone is kind of holding back, waiting to hear what is said tonight," said Kathy Jones, chief fixed income strategist at Charles Schwab. "The key will potentially be what is said on taxes because that's what puts money in people's pockets."
Individual companies have also been paying close attention to Trump's tax plans. According to a survey from EY, 48 percent of U.S. companies believe the current tax environment has become more challenging in the past year.
"The current tax environment is the most challenging for companies in recent memory. Dramatic policy shifts across the globe, and an increasing lack of certainty are leaving many corporations wondering where to place bets and to cut losses," said Paul Hammes, EY global divestiture advisory services leader, in a Tuesday release.
There are also lots of data on the calendar. The second reading of Q4 GDP showed a 1.9 percent increase, unchanged from the first read and below an expected 2.1 percent rise.
Meanwhile, low inventory and mortgage rates pushed home prices 5.8 percent higher in December, up from November's 5.6 percent annual gain, according to the S&P/Case-Shiller U.S. National Home Price Index.
Other data released Tuesday included consumer confidence for February, which hit its highest level since July 2001.
—CNBC's Patti Domm contributed to this report
Correction: This story has been updated to reflect that EY's survey found that U.S companies believe the tax environment has become more challenging over the past year.