U.S. equities closed lower on Tuesday as investors digested key economic data, but a rise in tech stocks helped cap losses.
The Dow Jones industrial average fell about 50 points, with Goldman Sachs contributing the most losses.
The Nasdaq composite traded 0.1 percent despite shares of Amazon breaking above $1,000 for the first time. The S&P 500 slipped 0.1, with energy leading decliners, but the information technology sector rose 0.31 percent. Tech has been on fire this year, rising around 20 percent. Nevertheless, the Nasdaq and S&P snapped a seven-day winning streak.
"The large tech outperformance is a trend I wouldn't fight right now," said Mark Heppenstall, CIO at Penn Mutual Asset Management, but noted, "there's a lot of good news priced into these stocks."
U.S. stock markets were closed Monday because of the Memorial Day holiday.
Personal income rose 0.4 percent in April, in line with expectations, and consumer spending increased by 0.4 percent. The personal consumption expenditures price index, the Federal Reserve's preferred measure of inflation, rose 0.2 percent.
"The series stubbornly has not risen to anywhere near the FOMC's preferred level of inflation. Despite ostensibly failing to satisfy half of its Dual Mandate, the central bank will have few problems progressing down the path to normalization," said Jeremy Klein, chief market strategist at FBN Securities.
Meanwhile, U.S. home prices rose 5.8 percent in March, according to the S&P/Case-Shiller U.S. National Home Price Index.