The Dow Jones Industrial Average fell for a second day, continuing Wall Street's lackluster start to the quarter, as bond yields rose and traders lowered expectations that the Federal Reserve would cut interest rates in June.

The 30-stock Dow dropped 396.61 points, or 1%, and settled at 39,170.24. At its session low, the benchmark was down more than 500 points. The S&P 500 slid 0.72% to settle at 5,205.81. The Nasdaq Composite shed 0.95% to finish at 16,240.45. It was the worst day since March 5 for the Dow and the S&P 500.

The second quarter for stocks is off to a rough start as sticky inflation data to end last week and some strong economic data on Monday send yields higher and reduce odds the Fed will cut rates in June. Stocks came under pressure Tuesday as the 10-year Treasury yield jumped to its highest level since Nov. 28. Oil prices also surged to highs last seen five months ago. 

"What we're seeing is a one-two punch with the combination of continued hot inflation data with profit taking," said Greg Bassuk, CEO of AXS Investments. With "very significant Q1 market gains … we're due for a little correction. But we think that the investor narrative also continues to be higher for longer with respect to interest rates."

Sarat Sethi, managing partner at Douglas C. Lane & Associates, remained unfazed by the sell-off and called it a "natural digestion" after equities have come up fast and quickly.

Tesla slid 4.9% on Tuesday after publishing disappointing first-quarter deliveries. Tech giants Nvidia, Alphabet and Microsoft all ended the day lower.

The S&P 500 is coming off a 10% gain for the first quarter, its best start to a year since 2019, as investors bet inflation would come down enough for the Fed to start cutting rates while the economy keeps growing. The Nasdaq gained 9% in the first quarter on the back of a run in artificial intelligence-related stocks such as Nvidia.

Tuesday's market losses come after February's core personal consumption expenditures price index released Friday showed a 2.8% annual increase, still a ways to go from the Fed's 2% inflation target. On Monday, the Institute for Supply Management's manufacturing gauge showed expansion for the first time since September 2022.

Regional Fed Presidents Mary Daly of San Francisco and Loretta Mester of Cleveland both said Tuesday they anticipate rate cuts this year but do not expect to start easing anytime soon. Odds for a June rate cut based on fed futures trading are now down to roughly 63%, off from about 70% a week ago, according to the CME FedWatch Tool. The question now is if the momentum to start 2024 can continue if the Fed stands pat on rates.

Stocks close lower Tuesday

The market saw a steep sell-off on Tuesday.

The S&P 500 shed 0.72% to settle at 5,205.81. The Dow Jones Industrial Average lost 396.61 points, or 1%, and settled at 39,170.24. The tech-heavy Nasdaq Composite, on the other hand, dipped 0.95% to finish at 16,240.45.

— Pia Singh

CNBC Pro: Stocks to buy if Tuesday's sell-off is something bigger

Tuesday's drop has left some wondering if there is just profit taking going on, or if it is the start of a bigger downtrend.

In the event of the latter, CNBC Pro screened for stocks trading up in the session that can offer defense and generate income. Those names include:

• Lockheed Martin, which has added around 0.3% and has a dividend yield of 2.77
• Sempra, which is up about 0.6% and offers a 3.46 dividend yield

Subscribers can click here to see which passed the screen.

— Alex Harring

Billionaires could soon take a look at this Atlanta Braves tracking stock, Rosenblatt says

The Atlanta Braves could be one of the next major sports teams on the selling block, and that could turn into a big win for investors.

The Braves trade publicly under a tracking stock called Atlanta Braves Holdings. After being spun out of the Liberty Media umbrella last year, the team could soon become the target of billionaires who want to own a team privately, according to Rosenblatt Securities.

"We assume that the Braves are likely to be taken private by a billionaire once properly tax-seasoned," analyst Barton Crockett said in a note to clients.

— Jesse Pound

Stocks are moving lower as investors check their expectations, says investor James Abate

Tuesday's broad equities sell-off is indicative that investors have had to check their expectations of perfection, according to James Abate, founder and chief investment officer at Centre Asset Management.

"The key thing is to preface, stocks are priced for perfection and for them to move higher or avoid a correction you needed rates to either go down and/or profits to move higher. And both of those pillars have been kicked out from underneath them the past few days," said Abate, who also manages the Centre American Select Equity Fund.

Rather, the market has experienced the complete opposite of these two criteria.

Higher-than-expected economic data and rising oil prices have pushed back expectations of a Fed rate cut later this year. Simultaneously, a downward-revised GDP number and negative retail commentary from Tesla and PVH have weighed down earnings growth expectations.

— Lisa Kailai Han

Dow, S&P 500 trading in tight ranges despite declines

Trading has been calm on Tuesday despite the sizable declines for the headline averages.

While the Dow is down about 1% today, its trading range is just a 205-point range (high was down almost 311, low was down 515). This is the narrowest range for the Dow on a day with a decline of at least 1% since December 2019.

It is a similar story for the S&P 500, which is trading in a 20-point range. That is its narrowest range on a day with a decline of at least 0.9% since May 2019.

— Jesse Pound, Robert Hum

Client demand stocks were already cooling before sell-off, Bank of America says

The stock market slide to start the second quarter may have been foreshadowed by weak demand last week.

Bank of America clients were net sellers of U.S. equities last week, according to a note from strategist Jill Carey Hall.

"Excluding corp. clients – where flows are always positive (buybacks) – all three client groups were net sellers of US equities for a second week in a row – private clients for the eighth consecutive week, hedge funds for the fourth, and institutional clients for the second. SMID caps both saw inflows for a second week while large caps saw outflows for the first time since early Feb," the note said.

— Jesse Pound, Michael Bloom

Convincing stock market sell-off on Tuesday, but maybe not yet a rout

Bears are firmly in control of stocks on Tuesday, but by the numbers, it is hardly a cataclysmic rout.

Some 78% of issues on the New York Stock Exchange are lower, but the percentage of share volume that is down on the day is 70%. Decliners are beating advancers by 4.4 to 1 on the Big Board.

Over on the Nasdaq Stock Market, 70% of all issues are lower and 75% of the day's volume is to the downside. Decliners are beating advancers on Nasdaq by just 3.6 to 1.

New highs versus new lows is also the tell of a resilient market. On the New York Stock Exchange, new 52-week highs total 78, more than twice the number of new 52-week lows at 37. The score is worse on Nasdaq, but even there, new highs total 76 stocks against 121 new lows.

— Scott Schnipper

Endeavor agrees to $13 billion takeover offer from Silver Lake

Endeavor Group Holdings has agreed to a takeover offer from private equity firm Silver Lake, the company announced Tuesday.

The deal values the sports and entertainment company at $27.50 per share, or about $13 billion. Endeavor is a major shareholder of TKO Group Holdings, the parent company of Ultimate Fighting Championship and World Wrestling Entertainment, and is also a leading talent agency. TKO is not a party to this new deal, according to the press release.

Trading was halted in Endeavor on Tuesday at $25.19 per share. The stock was below $18 per share in October, when Endeavor announced it was reviewing strategic alternatives.

— Jesse Pound

Fed's Mary Daly still expects three interest rate cuts in 2024

San Francisco Federal Reserve President Mary Daly said Tuesday that she still expects three interest rate cuts this year, though it is not a certainty.

"I think that is a very reasonable baseline but I would like to say here that this is projection, right?" Daly said during a panel discussion in Las Vegas. "Three rate cuts is a projection, and a projection is not a promise."

Daly, a voter this year on the rate-setting Federal Open Market Committee, also noted that she was not swayed either way by a report Monday showing the manufacturing sector in March expanded for the first time in 16 months. Instead, she said she and her fellow policymakers are looking at a broad range of indicators.

"There is a path in my mind where interest rates start to adjust this year. We're just not there yet," she said.

— Jeff Cox

Downward market momentum stems from bond yields, market pro says

Tuesday's sell-off can be tied to upward momentum in the bond market, said Larry Tentarelli, founder of the Blue Chip Daily Trend Report.

Tentarelli called recent data showing strength in the economy a double-sided coin. While that strength is positive for the market in the long term, he said it can catalyze short-term volatility as it adds to uncertainty around the path of interest rates and monetary policy from the Federal Reserve.

"The key thing that's moving the market right now is bond yields are higher," Tentarelli said. "What I think that you're seeing is the market is pricing in a stronger economy. I think it's also pricing in less Fed rate cuts."

"If the economy is strong, it should be a positive," he added. "But in the near term, it's just putting some pressure on the stock market."

— Alex Harring

Energy ETF reaches highest point in almost 10 years

Energy stocks globally are reaching new highs amid rising oil prices. On Tuesday, the iShares Global Energy ETF (IXC) rose 0.9% to hit its highest level since September 2014.

Among the companies in the exchange-traded fund that reached new 52-week highs on Tuesday include PetroChina, Canadian Natural Resources, ConocoPhillips and Marathon Petroleum.

— Hakyung Kim

UnitedHealth drags on Dow

More than half the Dow's sell-off can be attributed to one member: UnitedHealth.

The stock dropped nearly 8% during Tuesday's session, leading the index lower. It was one of several health-care stocks that slid after the Centers for Medicare & Medicaid Services announced the 2025 rate for Medicare Advantage and prescription drug coverage.

The lion's share of the 30 stocks in the Dow were tracking for losses. Amgen and Home Depot were the next-biggest losers, sliding more than 2% and 1%, respectively.

Dow Inc. was one of the few stocks bucking the downtrend, rising 0.9%.

As a whole, the blue-chip index dropped more than 1% in the session.

— Alex Harring

Stocks making the biggest moves midday Tuesday

Check out the companies making headlines in midday trading.

Tesla — Tesla shares sank more than 6% after the electric vehicle maker reported an 8.5% year-over-year decline in deliveries in the first quarter.

GE Vernova — Shares jumped more than 3% after GE Vernova started trading on the New York Stock Exchange on Tuesday under the ticker "GEV," following its spinoff from General Electric. Shares of GE Aerospace, which was formerly General Electric and is keeping the "GE" ticker symbol, gained roughly 1%.

ChampionX — Shares of the oilfield equipment maker jumped more than 8% after it agreed to be bought by SLB for $7.7 billion in an all-stock deal. The deal is expected to close before the end of 2024.

The full list can be found here.

— Hakyung Kim

Market sell-off taking momentum from solid economic data

Tuesday's equity sell-off is a bit of a "continuation" of relatively positive economic data. February's personal consumption expenditures price index, which was released Friday, matched economists' estimates, while the ISM manufacturing gauge on Monday topped expectations.

"The market is just taking the momentum in several kinds of major indicators, and running with it," said Brian Nick, senior investment strategist at the Macro Institute.

The notable sell-off in the tech sector might not necessarily be for a sector-specific outlook, but more for its current valuation, Nick added.

"The first thing you tend to see get hit when things are inflecting from growth, to slow down, to contraction, are the things that have done the best; the highest momentum stocks and the highest value stocks, the high P/E stocks," said Nick.

— Hakyung Kim

Energy, utilities, industrials and consumer defensive stocks outperform in Tuesday slump

The stocks that are doing the best in Tuesday's stock market washout are not the most prominent businesses that have led to the upside this year. They are the ones that keep the lights on and the pantry full.

The S&P 500 Energy Index is ahead 0.5% on Tuesday and more than 1.3% higher in the first two days of the second quarter. Standouts include Phillips 66, up 1.9%; Exxon Mobil, ahead 1.4%; and Pioneer Natural, which Exxon is in the middle of buying, up 1.3%.

The S&P 500 Utilities Index is gaining more than 0.2% Tuesday. Outperformers include Xcel Energy, ahead 1.5%, and DTE Energy, up 1.4%.

Industrial stocks advancing Tuesday include General Electric, up 2%; RTX Corporation, higher by 0.9%; and United Parcel Service, gaining 1.4%. Consumer defensive names that are holding up in the sell-off include Philip Morris International, ahead 0.3%; Hormel Foods, ahead 1.1%; plus McCormick and Kraft Heinz, both better by about 1%.

— Scott Schnipper

Tesla's delivery numbers were a 'disaster,' says analyst Dan Ives

Tesla's surprisingly low first-quarter delivery number is concerning to even long-term believers in the stock, such as Wedbush analyst Dan Ives.

"While we were anticipating a bad 1Q, this was an unmitigated disaster 1Q that is hard to explain away," Ives said in a note to clients.

Shares of the automaker were down about 5% during midday trading. Read more analysis of Tesla on CNBC Pro.

— Jesse Pound

Energy stocks rise after crude oil prices touch five-month highs

Energy stocks rose Tuesday as crude oil prices touched the highest level since October.

The energy sector was up 0.75% during late morning trading while the broader S&P 500 was down about 1%. Phillips 66, Exxon Mobil, Pioneer Natural Resources, ConocoPhillips and Occidental led the sector's gains with the stocks rising 1% or more.

The pop in energy stocks comes as U.S. crude oil and Brent futures touched five-month highs earlier in the session on renewed supply concerns as geopolitical tensions continue to haunt the market.

Ukraine struck a major oil refinery in Russia, while Iran and Syria accused Israel of hitting the Iranian consulate in Damascus, once again raising fears of a broader conflict in the Middle East.

West Texas Intermediate and Brent futures have rallied this year on the expectation that the market will enter a supply deficit as OPEC+ cuts 2.2 million barrels per day of production. U.S. crude has gained 18% this year while the global benchmark has added 14.6%.

— Spencer Kimball

Crypto stocks slide as bitcoin falls to $65,000

Stocks tied to the performance of bitcoin extended losses from the previous day as the cryptocurrency continued its own slide.

Crypto exchange Coinbase fell 4%, while software provider MicroStrategy, which largely trade as a proxy for the price of bitcoin, lost nearly 7%. The largest mining stocks, Marathon Digital and Riot Platforms, lost 7% and 6%, respectively. CleanSpark, one of the best-performing miners this year, slid more than 6%.

The decline in bitcoin intensified Tuesday as the 10-year U.S. Treasury yield hit its highest level of the year and the dollar, which has an inverse relationship with bitcoin, reached its highest level in almost five months. It was last trading lower by nearly 5% at $65,990.00, bringing its two-day loss to 7%.

— Tanaya Macheel

Chip stocks lead market lower

Chipmakers that contributed heavily to 2024's first-quarter gain led stocks lower during Tuesday's sell-off.

The VanEck Semiconductor Index dropped 2.1%. On Semiconductor and Advanced Micro Devices slumped 4%, while Broadcom and ASML dropped about 3%.

Market leader Nvidia, which rallied more than 80% in the first quarter, declined 2.5%. Micron Technology, Cadence Design Systems and Applied Materials all fell at least 2%.

— Samantha Subin

Level to watch on the S&P 500 during Tuesday's sell-off

"Growth stocks are taking a well-deserved break after serving in a leadership role for Q1," said David Keller, chief market strategist for StockCharts.com and a contributor to Chart Investing Pro for CNBC Pro. "While names like Tesla and Apple have already entered distribution patterns, stocks like Nvidia and other semiconductors are now starting to feel the effects of bearish divergences that have been widespread in sectors like technology."

Looking at the chart of the S&P 500, the analyst is focused on one level in particular.

"While the S&P 500 remains in a primary uptrend, a break below tactical support at 5,200 could open the door to a retest of previous support around 5,050," said Keller.

The S&P 500 was last just below the 5,200 level during midday trading. A decisive close below that could mean more losses ahead if Keller's analysis is correct.

— John Melloy

Health-care stocks headed for worst day since early November

The S&P 500 health-care sector dropped 1.8%, putting it on track for its biggest one-day drop since Nov. 9, when it plunged 2.1%. Humana fell 14% to lead the sell-off, while CVS and UnitedHealth dropped 8.8% and 7%, respectively.

— Fred Imbert

Dow heads for worst day in nearly two months

The Dow's 440-point decline Tuesday put it on track for its biggest one-day loss since Feb. 13, when it shed more than 500 points, or 1.3%. UnitedHealth, Amgen and Intel were the biggest laggards on the day.

— Fred Imbert

Job openings held steady in February

Job openings were little changed in February, though the ratio of positions to available workers fell again, the U.S. Department of Labor reported Tuesday.

The Job Openings and Labor Turnover Survey showed available positions at 8.76 million, roughly in line with the Dow Jones estimate for 8.8 million. That was just 8,000 above the January level.

However, the ratio of openings to available workers declined considerably, down to 1.35 from 1.43 the preceding month, indicating more loosening of the labor market. The level had been at more than 2 to 1 during its peak in March 2022.

Rates for both hiring and layoffs and discharges edged higher on the month, while quits were little changed.

— Jeff Cox

10-year Treasury yield hits highest level since November

The benchmark 10-year Treasury note yield briefly broke above 4.4% on Tuesday, as bets on Federal Reserve interest rate cuts cooled. That was its highest level since Nov. 28. It was last trading at 4.391%.

— Fred Imbert

Commodity prices pushed to highest levels since August 2022

Surging oil prices have pushed a broad-based commodity index to its highest level since the summer of 2022.

As the price of U.S. crude has jumped more than 18% in 2024, the CRB Commodity Index has risen nearly 11%. The index on Monday closed at its highest level since Aug. 30, 2022.

The CRB measure comprises 19 different raw materials including energy, agricultural products, precious metals and industrial metals. Other significant contributors to its increase this year include gold, up nearly 8%; sugar, up about 12%; and copper, a traditional economic barometer that has risen 4.5%.

— Jeff Cox

NYSE decliners lead advancers 4-1 to start Tuesday's session

Market breadth was lackluster early Tuesday, as stocks struggled to maintain the strong momentum seen in the first quarter. As of 9:43 a.m. ET, about four stocks at the New York Stock Exchange fell for every advancer. Overall, 2,100 names were lower, while just more than 500 traded higher.

— Fred Imbert

Stocks open in the red on Tuesday

The S&P 500 opened 0.9% lower, while the Dow Jones Industrial Average lost 340 points, or nearly 0.9%, shortly after 9:30 a.m. The Nasdaq Composite, meanwhile, slid 1.2%.

— Pia Singh

Tesla stock slides on disappointing first-quarter deliveries

Shares of Tesla plunged 7.3% after the electric vehicle maker published its first-quarter vehicle production and deliveries report for 2024, posting total deliveries of 386,810 for the period. According to a mean of 11 estimates, however, analysts surveyed by FactSet were expecting deliveries of around 457,000 for the period ending March 31.

Tesla produced 433,371 vehicles during the quarter. For more, read here.

— Pia Singh, Lora Kolodny

U.S. crude touches highest level since October on renewed supply fears

U.S. crude on Tuesday hit the highest level since October on renewed concerns about global supply.

The West Texas Intermediate contract for May delivery traded as high as $85.46 a barrel, while the Brent contract for June delivery hit $89.08 a barrel.

U.S. crude and the global have since pulled back slightly to $85.02 and $88.66 a barrel, respectively.

The move came as geopolitical fears continue to haunt the market, with Ukraine hitting Russia's third-largest oil refinery Tuesday in a drone strike, the latest attack in Kyiv's campaign against Russian energy infrastructure. An industry source told Reuters the damage was not significant.

Tensions are also boiling in the Middle East after Iran and Syria accused Israel of hitting Iran's consulate in Damascus in a missile attack.

The latest geopolitical flashpoints come as oil prices have been on an upward trajectory this year on the expectation that the market will enter a supply deficit this year.

OPEC+ has slashed 2.2 million barrels per day of production through at least the second quarter in an effort to keep prices from sagging. The cartel and its allies are unlikely to change this policy at a meeting scheduled for Wednesday, five OPEC+ sources told Reuters.

U.S. crude is up 18.5% this year, while Brent has gained 15%.

These are the stocks on the move before the bell

Here are some of the stocks on the move before the bell.

• PVH — Shares of the Calvin Klein and Tommy Hilfiger parent tanked more than 21% on weak revenue guidance for the first quarter and full year.
• Humana, UnitedHealth — Health insurance managed care stocks declined after the Centers for Medicare & Medicaid Services announced rates for the 2025 calendar year will increase 3.7%, as previously proposed. Humana shed 9.6%, while CVS Health tanked 5.3%.

Read the full list of stocks on the move here.

— Samantha Subin

SLB will buy ChampionX for more than $7 billion

SLB shares were down more than 1% in the premarket after the company announced it will buy oilfield equipment maker ChampionX for $7.7 billion in an all-stock deal. ChampionX shares were halted.

The deal is expected to close before the end of 2024.

"This presents a significant opportunity for service providers who can partner with customers throughout the entire production lifecycle, offering integrated solutions and delivering differentiated value," SLB CEO Olivier Le Peuch said in a statement.

— Fred Imbert

Country Garden announces trading suspension

Country Garden Holdings said on Tuesday trading in its shares on the Hong Kong Stock Exchange will be suspended.

The trading suspension will come into effect from 9 a.m. Hong Kong time on April 2, the statement read.

The beleaguered China property developer said on Thursday that its results for 2023 will be delayed.

Shares of the Hong Kong-listed company have fallen nearly 38% so far this year.

— Shreyashi Sanyal

Australian gold miners surge after bullion hit record highs

Shares of gold miners in Australia climbed as the market reopened after a holiday, with heavyweight Newmont Corporation leading sector-wide gains, up more than 5%.

Newmont is currently the second-largest gold miner on the Australian Securities Exchange by market cap.

Northern Star Resources, the largest gold miner on the ASX by market cap, also rose about 2.21%.

The gains come after gold prices hit fresh records on Thursday, reaching a high of $2,286.4.

— Lim Hui Jie

Reserve Bank of Australia to shift to a new system to implement monetary policy

Australia's central bank will switch to a new system for implementing its monetary policy, Christopher Kent, Assistant Governor of the Reserve Bank of Australia, said in a speech Tuesday.

Kent said the RBA endorsed the option to move to the ample reserves system, with full allotment repurchase agreement auctions for its open market operations, similar to that of the Bank of England, the European Central Bank and Sweden's Riksbank.  

"I want to emphasize that this decision has no implications for the current or future stance of monetary policy," he said, adding that it will not affect the way RBA currently handles quantitative tightening.

— Shreyashi Sanyal

8 of 11 S&P 500 sectors finished lower Monday

Eight of the 11 S&P 500 sectors ended Monday's session lower.

Real estate was the worst performer and slid 1.8% in its worst daily performance since Feb. 13, when it fell 1.8%. The best-performing sector was communication services, which rose 1.5%.

Despite Monday's losses, all 11 sectors are still trading within 10% of their 52-week highs.

— Lisa Kailai Han, Christopher Hayes

Health insurance stocks slide Monday night

Health insurance stocks fell during Monday's extended trading hours. The move came after the Centers for Medicare & Medicaid Services finalized its capitation rates for Medicare Advantage for the 2025 calendar year.

The government's payments to Medicare plans will on average increase by 3.7%, or more than $16 billion in the next year. This final rate of 3.7% is unchanged from January's proposed rate of 3.7%, disappointing analysts who had expected between 50 basis points and 100 basis points of improvement.

Shares of Humana lost 9%, while both UnitedHealth Group and CVS Health shed 5%. Elevance Health and the Cigna Group respectively fell 4% and 2%.

— Lisa Kailai Han

S&P 500 futures open little changed

S&P 500 futures flickered near the flatline Monday night.

Nasdaq 100 futures traded less than 0.1% lower. Dow futures, on the other hand, slid 113 points, or 0.3%, dictated by a slide in health insurance stocks.

— Lisa Kailai Han