US stocks closed lower on Tuesday after a volatile session, as investors prepared for the prospect that the Federal Reserve will signal an increase in interest rates as soon as March.
The technology-heavy Nasdaq Composite stock index fell 2.3 per cent, earlier dropping as much as 3.2 per cent. The decline followed a wild ride on Monday when the index, which includes Apple and Microsoft, sank almost 5 per cent before ending the day with a small gain.
The broader S&P 500 index, which is on course for its worst January on record, closed 1.2 per cent lower. Sectors of the index including tech, utilities and communication services took significant hits. The blue-chip index has lost nearly 9 per cent of its value so far this month.
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