U.S. equities fell on Tuesday after Goldman Sachs shocked Wall Street by missing estimates. Investors also remained vigilant amid U.S.-North Korea tensions and the nearing of the French presidential election.
"We always say the market moves on earnings and the expectation of earnings," said Jeff Carbone, managing partner of Cornerstone Financial Partners. "We're getting mixed results in the early part of the earnings season."
"Earnings were expected to be very good and now we're taking the 'very' part out of it," he said.
The Dow Jones industrial average closed about 110 points lower, with Goldman shaving off 73 points and Johnson & Johnson taking out 26 points.
"The market has been sideways recently and investors have been looking for a reason to sell off," said Tom Cassidy, chief investment officer at Univest Wealth Management Division.
The S&P 500 fell 0.3 percent with health care, energy and financials leading decliners. The Nasdaq composite declined around 0.1 percent.
Goldman Sachs reported weaker-than-expected first-quarter results across the board, with trading revenue disappointing analysts.
"I'm a little surprised that they missed because the market did so well in the first quarter," said Bruce Bittles, chief investment strategist at Baird. The S&P 500 and the Dow Jones industrial average rose 5.53 percent and 4.56 percent last quarter, respectively.
Last quarter marked the first time since 2015 that Goldman's earnings per share missed analysts' expectations and the first time since the first quarter of last year that sales came below estimates.