Wall Street's primary indexes wavered on Tuesday, as signs of a further deterioration in consumer mood tempered investor optimism that the Trump administration could take a lenient approach on trade policies next week.

A Conference Board report showed that an index tracking consumer confidence dropped to 92.9 in March, at a time when worries persist that a global trade war could fan inflation and slow the economy. Economists were expecting the index to stand at 94.

In a brief respite for markets, U.S. President Donald Trump on Monday, suggested that not all proposed levies would be enforced by April 2, with some countries potentially receiving exemptions.

The benchmark S&P 500 and the tech-centric Nasdaq reached their highest marks in over two weeks, buoyed by a robust rally in megacap stocks such as Nvidia and Tesla.

However, the looming uncertainty surrounding Trump's fluctuating tariff strategy has weighed on market sentiment, with the benchmark S&P 500 on track for annual declines.

Reports also emerged regarding a potential two-step tariff plan under consideration for next week.

"It is positive (Trump's latest tariff stance) .. but one thing for sure is that volatility will continue. We wouldn't make any major sectoral allocations based on the tariff narrative that is coming from the U.S. until at least April 2," said Lale Akoner, lead global market analyst at eToro.

Adding to the unease, ratings agency Moody's highlighted that U.S. fiscal strength is on track for a persistent multiyear decline.

Tesla shares fell 1.7% after a substantial 12% rally from the previous day.

Despite a general rise in electric vehicle registrations across Europe, data for February revealed a year-on-year contraction in Tesla's market share, marking the second consecutive month of declining sales.

An index tracking housing stocks lost 1%, bogged down by KB Home's 7% drop as the homebuilder cut its full-year 2025 revenue forecast.

At 11:09  a.m. EST, the Dow Jones Industrial Average was up 85.64 points, or 0.20%, the S&P 500 gained 16.14 points, or 0.28%, and the Nasdaq Composite rose 87.17 points, or 0.47%.

Six of the S&P 500 sectors dropped, with utilities leading declines by a 1.6% fall. On the other hand, energy stocks rose 1% to a more than three-month high.

Fed Governor Adriana Kugler said that the central bank's interest rate policy remains restrictive, but progress on bringing inflation back to the central bank's 2% target has slowed.

New York Fed President John Williams said firms and households are "experiencing heightened uncertainty "about what lies ahead for the economy.

Later in the week, focus will squarely be on the personal consumption expenditures price index, which is the Fed's preferred inflation gauge.

Among others, McCormick & Company dropped 1% after the food processing company missed estimates on quarterly profit.

CrowdStrike gained 4.5% after brokerage BTIG raised its rating on the cybersecurity company to "buy" from "neutral."

Advancing issues outnumbered decliners by a 1.21-to-1 ratio on the NYSE and declining issues outnumbered advances by a 1.3-to-1 ratio on the Nasdaq.

The S&P 500 posted eight new 52-week highs and no new lows, while the Nasdaq Composite recorded 26 new highs and 74 new lows.