US equity indexes fell, with the S&P 500 set for its first drop in eight trading sessions, amid declines in growth sectors such as consumer discretionary, technology, and communication services.

The Nasdaq Composite fell 0.8% to 22,755.2, with the S&P 500 down 0.5% to 6,705.4 and the Dow Jones Industrial Average 0.4% lower at 46,526.6. Consumer discretionary, technology, and communication services led the decliners intraday. Utilities, consumer staples, and healthcare were the gainers.

Among large-cap companies with a market capitalization of more than $200 billion, Oracle (ORCL) and Tesla (TSLA) were among the three steepest decliners intraday.

Oracle is seeing thin profit margins in its fast-growing artificial intelligence cloud server business, according to internal documents cited by The Information on Monday. Shares dropped 5.5% intraday, the third-worst performer on the S&P 500.

Tesla is expected to announce a lower-cost version of its Model Y sport utility vehicle on Tuesday in a bid to reverse declining sales and its shrinking market share, Reuters reported Tuesday. Shares slid 2.8% intraday.

In economic news, consumer expectations for one-year US inflation growth increased to a 3.4% gain in September from a 3.2% gain in the previous month, according to a survey released by the New York Federal Reserve Bank on Tuesday. The first look at consumer confidence for October shows a drop from September, with the RealClearMarkets' monthly index decreasing to 48.3 in October from 48.7 in the previous month.

Meanwhile, President Donald Trump told reporters on Monday that he is open to discussing healthcare subsidies with the Democrats in an attempt to reopen the federal government, according to Bloomberg. On Monday, the Senate rejected proposals to fund the federal government.

"I am happy to work with the Democrats on their failed healthcare policies, or anything else, but first they must allow our government to re-open," Trump said in a separate Monday post on social media.

Gold futures rose 0.5% to $3,996.4, after scaling yet another peak of $4,014.50 earlier in the session.

Most Treasury yields fell, with the two-year down 2.3 basis points to 3.57% and the 10-year rate slumped 4.1 basis points to 4.12%.