The US stock market turned downward in the afternoon after the purchasing managers' index for the service sector unexpectedly fell to 50.1 in July compared to 50.8 in June, according to the ISM Institute's figures.
The stocks were also weighed down by US President Donald Trump's statement to CNBC that tariffs on chips and medicines will soon be introduced, as the goal is for them to be manufactured in the US.
At the close, the broad S&P 500 index had lost 0.5 percent, the Dow Jones industrial index 0.1 percent and the technology-heavy Nasdaq composite index 0.7 percent.
Chip manufacturer Nvidia fell 1 percent and AMD – which will report after the market close – fell 1.4 percent.
Telehealth company Hims & Hers Health reported worse quarterly figures than expected and fell 12.4 percent.
Against the trend, however, one of the year's real stock rockets on the New York Stock Exchange – Palantir – went after the AI software company exceeded market expectations in its report for the second quarter on Monday.
The company's revenue landed at $1 billion exactly, which meant an increase of 48 percent compared to the second quarter of last year. Palantir rose 7.9 percent on Tuesday.
