US stock markets closed mixed on Tuesday, with the S&P 500 declining by 0.5%, while the Dow Jones Industrial Average registered a slight increase of 0.1%. The Nasdaq Composite fell by 1.2%, reflecting ongoing concerns in the technology sector.

Investor sentiment has been notably impacted by recent comments made by former President Donald Trump regarding trade policies. His remarks have raised fears of potential disruptions in international trade, contributing to a cautious outlook among investors. Market analysts point out that such comments often create uncertainty, which can weigh heavily on stock performance.

The technology sector, a significant driver of market performance in recent years, was especially affected by news from Microsoft, one of the industry’s giants. Microsoft announced that it would be cutting back on its data center spending, a decision that has raised alarm among stakeholders regarding overall tech sector growth and investment plans. Following this announcement, shares of several tech companies experienced declines, further contributing to the Nasdaq’s drop.