In what appears to be a relatively uneventful session on Wall Street, risk sentiment worsened as all major U.S. equity indices traded in the red by midday in New York. The S&P 500 and Nasdaq 100 are at risk of breaking their current eight-day winning streak, which has nearly erased the losses suffered earlier this month.

Small cap stocks underperformed large cap stocks on Tuesday, adding to the negative sentiment. Nine out of the 11 sectors in the S&P 500 were in negative territory, with healthcare and consumer staples being the only exceptions.

Adding to the negative tone, the U.S. dollar fell 0.4% against a basket of currencies, reaching its lowest level since late December 2023. The Invesco DB USD Index Bullish Fund ETF (UUP) is experiencing its worst three-day performance year-to-date. This decline in the value of the dollar further highlights the risk aversion among investors.

Additionally, long-term Treasury yields saw a significant drop, with the long-dated iShares 20+ Year Treasury Bond ETF (TLT) rising 0.8%. This marks its third consecutive session in the green and the seventh in the last eight. The decline in Treasury yields indicates a flight to safety as investors seek less risky assets.

While the stock market struggled, gold remained steady at record-high levels, with prices holding at $2,500 per ounce. On the other hand, oil prices continued their decline, dropping by another 0.5%, marking their third consecutive drop.

In the cryptocurrency market, Bitcoin (BTC/USD) slipped 1.2% to $58,755, reflecting the overall cautious sentiment among investors.

If the downward trajectory continues, it will break the recent winning streak in the U.S. stock market and indicate increased risk aversion among investors. The market will closely watch for any potential catalysts or positive developments that could potentially reverse the current sentiment, but for now, Wall Street remains on a downswing.