US equity indexes fell in midday trading Tuesday amid declines in high-growth and cyclical sectors as relatively weak economic data preceded tech-bellwether Nvidia's (NVDA) upcoming quarterly results.

The Nasdaq Composite fell 0.9% to 22,497.1, with the S&P 500 down 0.6% to 6,632.4 and the Dow Jones Industrial Average 0.9% lower at 46,205.8.

Consumer discretionary and technology led the laggards, which also included cyclicals such as industrials and energy.

All Magnificent-7 stocks retreated. The Global X Artificial Intelligence & Technology ETF (AIQ), with net assets of $5.98 billion and investments in firms related to AI, dropped 1.6%, the lowest since late September. The $386 billion Invesco QQQ Trust (QQQ), a tech-heavy exchange-traded fund offering exposure to Magnificent-7 across technology and communication services sectors, dropped 2.3%, the weakest since mid-October.

In economic news, new orders for US factory goods, excluding a 7.9% increase in transportation orders, rose 0.1% after a 0.5% gain in July. Factory shipments fell 0.1%, while unfilled orders rose 0.6%.

The National Association of Home Builders' monthly housing market index climbed to 38 in November from 37 in October, compared with expectations for no change in a survey compiled by Bloomberg. The index was still below the 46 print a year earlier.

"While lower mortgage rates are a positive development for affordability conditions, many buyers remain hesitant because of the recent record-long government shutdown and concerns over job security and inflation," said NAHB Chairman Buddy Hughes. "More builders are using incentives to get deals closed, including lowering prices, but many potential buyers still remain on the fence."

Most Treasury yields fell, with the two-year down 2.3 basis points to 3.59% and the 10-year lower by one basis point to 4.12%.