Purvi Agarwal and Johann M Cherian

(Reuters) - Wall Street's main index fell on Tuesday as investors tried to drive uncertainty around tariffs by U.S. President Donald Trump, while awaiting the Fed's interest rate decision this week.

Trump said late Monday that he would announce a pharmaceutical tax in the next two weeks, his latest move to global financial markets over the past few months.

Eli Lilly and Merck each fell more than 3% while Pfizer fell 1.7% after the news.

However, the index far exceeded their meeting lows after Treasury Secretary Scott Bessent said the government could announce some trade agreements this week.

"The market will be based on the tariff discussion...we are vulnerable to news cycles and lack the actual basics to trade," said Mark Hackett, chief market strategist in the country.

“Until we get news about signing the actual transaction, we will be vulnerable to these volatility.”

Tariff-driven uncertainty has led consumers, businesses and even the Fed to adopt a wait-to-view model.

The Fed will begin its two-day meeting on Tuesday, with central banks generally expected to maintain interest rates. Comments from policy makers will be reviewed to suggest how they perform in the monetary policy they are taking this year.

According to data compiled by LSEG, traders' pricing cuts by only 25 base points in July.

At 11:42 am ET, the Dow Jones Industrial Average dropped 168.75 points, or 0.40%, to 41,053.76, S&P 500 lost 20.39 points, or 0.36%, to 5,629.99, while Nasdaq combined lost 90.30 points, or 90.30 points, or 0.51%, or 0.51%, or 0.51%, to 17,753.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.953.95

Most S&P 500-year fields traded in red, and healthcare was the biggest loser, down 1.7%.

At a highlight, Constellation Energy grew 9.8% after quarterly results, boosting utilities by 1.5%.

Shares of data analytics company Palantir fell 12.5% ​​to the bottom of the S&P 500 because of poor revenue and unsatisfactory online profits.

Ford Motor is the latest, suspending its annual outlook for the week, joining many companies that withdraw their forecasts in April. The automaker's stock reversed losses in the former market, continuing by about 4% in rough trading.

Hackett said that like Ford is in a complicated tariff situation, investors are uncertain and confused, but Trump's comments on the auto industry last week were a huge beneficiary, which was positive.

Against the uncertain trade backdrop, businesses increased imports of goods in March, bringing the country's trade deficit to a record $140 billion.