(MENAFN) U.S. equity markets closed in negative territory on Tuesday as political paralysis in Washington and a flurry of corporate developments weighed on investor sentiment.

The Dow Jones Industrial Average shed 91.99 points, or 0.2%, to finish at 46,602.98. The S&P 500 declined 25.69 points, or 0.38%, to 6,714.59, ending a seven-session winning streak. Meanwhile, the tech-heavy Nasdaq Composite dropped 153.3 points, or 0.67%, to 22,788.36 after briefly touching fresh intraday highs earlier in the day.

Losses were broad-based, with six of the S&P 500’s 11 major sectors in the red. Consumer discretionary led the declines, falling 1.43%, followed by communication services, which dropped 0.73%. On the upside, consumer staples and utilities advanced 0.86% and 0.42%, respectively.

Hopes for a swift resolution to the U.S. government shutdown dimmed after the Senate on Monday blocked a stopgap funding bill for the fifth time. The measure, aimed at keeping federal agencies running through Nov. 21, failed to secure the required 60 votes, with senators largely sticking to party lines.

On the corporate front, AppLovin rallied 7.64%, rebounding from Monday’s steep 14% decline. The recovery came despite ongoing scrutiny from the U.S. Securities and Exchange Commission, which is probing the company's data-collection practices following a whistleblower complaint.

Shares of Trilogy Metals surged threefold after the White House announced plans to reverse a ban on Alaska’s Ambler Road project, a policy shift from the Biden administration. The U.S. government also said it would acquire a 10% stake in the Canadian firm to bolster domestic mineral exploration.

IBM rose approximately 1.5% following news of a strategic alliance with AI startup Anthropic. The partnership will see Anthropic’s Claude large language model integrated into IBM’s enterprise software offerings.

However, losses in other major names dragged markets lower. Ford Motor dropped 6.14% after a fire at a major aluminum supplier raised concerns about prolonged production disruptions. Oracle fell 2.52% amid investor concerns over thinner-than-expected margins in its cloud business.

"There's a lot of interest in capex spending and making sure that you're first or you have the ability to source the technology you need to grow profits in this new AI realm," Ameriprise chief market strategist Anthony Saglimbene told media. "Investors, at some point, will look at how much money is being spent and say, 'What's the return on investment?'"

"It doesn't mean that AI is in a bubble. It just means that there's probably some opportunity for a little bit of reset in expectations, particularly about the results and profitability that come from just this enormous amount of money that's being thrown into AI right now," he added.

Tesla slipped 4.45% after unveiling lower-priced Model Y and Model 3 vehicles, partially reversing gains made in Monday’s rally. Meanwhile, Amazon inched higher as the company launched its two-day “Prime Big Deal Days” sales event.

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