Tuesday's decline came in the wake of one report showed an uptick in durable goods orders in February, boosted by an increase in spending on transportation equipment, while other data revealed consumer confidence ticking lower in March, reflecting concerns about the near-term trajectory of the economy.

Package delivery giant United Parcel Service (UPS) led losses on the index. While the company released projections for 2026 that beat estimates, UPS reportedly cautioned that the current quarter would be a difficult one, pointing to aggressive cost-cutting measures in response to the headwinds. UPS shares plummeted 8.2%.

Shares of International Paper (IP) dropped 6.5% amid reports that the company is in discussions to buy paper and packaging firm DS Smith in an all-stock deal worth around $7.2 billion. International Paper said the potential acquisition would enhance its position in the corrugated packaging business in Europe.

APA Corp. (APA) shares slipped 4.9% after analysts at Goldman Sachs lowered their price target on the stock. The losses marked a reversal from gains on Monday, when the oil and gas exploration and production firm got a boost from rising crude oil prices.

McCormick & Company (MKC) shares notched the S&P 500's top daily performance, soaring 10.5% after the producer of spices and seasonings beat profit and sales estimates for its fiscal first quarter of 2024. The company posted year-over-year growth in sales, net income, and earnings per share (EPS), with price increases and a higher gross profit margin helping offset flat demand.

Shares of data storage provider Seagate Technology (STX) jumped 7.4% as Morgan Stanley upgraded the stock to "overweight" and boosted its price target by 58% to $115. The analysts highlighted Seagate's advantage in heat-assisted magnetic recording along with increased demand related to generative artificial intelligence (AI) technology.

MGM Resorts International (MGM) shares gained 4.3% after Mizuho initiated coverage on the stock with a "buy" rating, pointing to growth opportunities related to a potential casino development in downstate New York as well as its BetMGM online sportsbook.