U.S. stocks experienced a significant decline on Tuesday, with the S&P 500 down 1.6%, the Dow falling 1.5%, and the Nasdaq composite losing 2%.

The downturn is attributed to concerns over persistent inflation and potentially high interest rates, inciting trepidation ahead of the Federal Reserve's rate decision.

Rising labor costs in the U.S., suggesting continued inflation, have prompted caution among investors.

Despite the overall market loss, major tech companies like Tesla and Apple had previously recorded sharp gains.

April's surge in U.S. inflation is affecting government borrowing costs and modifying expectations about the timing of interest rate cuts.

Traders in the options market are bracing for a significant reaction in the S&P 500 Index based on the Federal Reserve's impending interest-rate decision.

Extreme volatility hit the cocoa futures market due to liquidity issues, adding to the broader market's unease and concerns about economic growth.