U.S. equities closed lower on Tuesday as investors mulled over the prospects of tighter monetary policy and the House Republicans' legislation to repeal and replace Obamacare.
"This is typical of a market that is re-assessing why it went into orbit," said Peter Cardillo, chief market economist at First Standard Financial. "That's why you're seeing the market not do much of anything."
The Dow Jones industrial average pulled back about 30 points with Chevron contributing the most losses. The 30-stock index moved just 69.28 points in the session. The S&P 500 declined 0.3 percent, with energy leading decliners. The two indexes also recorded their first two-day losing streak since January.
The S&P 500 declined 0.3 percent, with energy leading decliners. The two indexes also recorded their first two-day losing streak since January.
"We may actually be on the cusp of some sort of consolidation of the incredible gains we've seen post election," said Peter Boockvar, chief market analyst at The Lindsey Group, in a note.
He also pointed out that the number of New York Stock Exchange issues that closed at a 52-week low outnumbered those that closed at a 52-week high on Monday.
The Nasdaq composite slipped 0.26 percent. The three major indexes tried for gains earlier in the session.
IBB 5-day chart
The GOP health care proposal includes killing the requirement that most Americans must have health insurance or pay a fine, among other changes.
"Skyrocketing premiums, soaring deductibles, and dwindling choices are not what the people were promised seven years ago," House Speaker Paul Ryan said in a statement after the plan was unveiled on Monday night.
The iShares Nasdaq Biotechnology ETF and SPDR S&P Biotech ETF fell more than 1 percent on Tuesday after President Donald Trump tweeted he was working on a "new system where there will be competition" in the drug industry.
@realDonaldTrump I am working on a new system where there will be competition in the Drug Industry. Pricing for the American people will come way down!
"Investors could have reacted similarly to when Trump tweeted about health care previously," said Mike Bailey, director of research and chair at FBB Capital Partners. "But his tweet could be more bark than bite."
Investors also looked ahead to the February jobs report, which is scheduled to release on Friday. Economists polled by Reuters expect the U.S. economy to have added 186,000 jobs last month.