NEW YORK, New York - U.S. stock markets retreated on Tuesday, with major indices posting losses amid renewed economic concerns, while some global markets bucked the trend with modest gains.

U.S. President Donald Trump met with new Canadian Prime Minister Mark Carney on Tuesday as the pair set about mending the U.S.-Canada relationship and discussing a new trade deal. Trump surprised markets when he back-tracked from recent statements promising trade deals, saying "We don't have to sign deals."

The U.S. Federal Reserve meantime was meeting with an announcement on rates expected Wednesday.

"Despite external pressure to lower rates, the Fed will likely hold strong on the current pause until we see greater clarity on the major economic factors impacting the economy," Steve Rick, chief economist at TruStage told CNBC Tuesday.

"As the impacts of tariffs settle in, we still broadly expect the economy to continue to shift towards a slower pace of growth than in recent months," Rick said.

U.S. Markets Decline

The S&P 500 (^GSPC) fell 43.47 points, or 0.77 percent, to close at 5,606.91, with trading volume reaching 2.736 billion shares. The Dow Jones Industrial Average (^DJI) dropped 389.83 points, or 0.95 percent, settling at 40,829.00, while the Nasdaq Composite (^IXIC) slid 154.58 points, or 0.87 percent, to 17,689.66.

Small-cap stocks also struggled, as the Russell 2000 (^RUT) declined 21.07 points, or 1.05 percent, to 1,983.19. Market volatility rose, with the CBOE Volatility Index (^VIX) jumping 4.74 percent to 24.76.

Mixed Performance Across Global Markets

Americas

• Canada's S&P/TSX Composite (^GSPTSE) edged up 0.08 percent to 24,974.72.

• Mexico's IPC (^MXX) surged 2.83 percent to 57,417.93.

• Brazil's Bovespa (^BVSP) inched up 0.02 percent to 133,515.81.

• Argentina's MERVAL (^MERV) soared 3.39 percent to 2,129,994.50.

Europe & UK

• London's FTSE 100 (^FTSE) barely moved, gaining just 0.01 percent to 8,597.42.

• Germany's DAX (^GDAXI) slipped 0.41 percent to 23,249.65.

• France's CAC 40 (^FCHI) fell 0.40 percent to 7,696.92.

• The Euro Stoxx 50 (^STOXX50E) declined 0.37 percent to 5,263.38.

• Belgium's BEL 20 (^BFX) dropped 1.14 percent to 4,465.65.

Asia-Pacific & India

• Japan's Nikkei 225 (^N225) climbed 1.04 percent to 36,830.69.

• Hong Kong's Hang Seng (^HSI) rose 0.70 percent to 22,662.71.

• Australia's ASX 200 (^AXJO) dipped 0.08 percent to 8,151.40.

• India's Sensex (^BSESN) edged down 0.19 percent to 80,641.07.

• South Korea's KOSPI (^KS11) gained 0.12 percent to 2,559.79.

Middle East & Africa

• Israel's TA-125 (^TA125.TA) rose 0.53 percent to 2,601.11.

• Egypt's EGX 30 (^CASE30) advanced 0.23 percent to 32,285.50.

• South Africa's Top 40 (^JN0U.JO) increased 0.50 percent to 4,989.21.

Currency Movements

• The U.S. Dollar Index (DX-Y.NYB) fell 0.64 percent to 99.19.

• The British Pound (^XDB) strengthened 0.49 percent to 133.59.

• The Euro (^XDE) gained 0.45 percent to 113.67.

• The Japanese Yen (^XDN) surged 0.82 percent to 70.18.