01:36 PM EDT, 05/06/2025 (MT Newswires) -- US equity indexes fell with government bond yields in midday trading Tuesday amid a decline in risk sentiment.

The Nasdaq Composite slid 0.8% to 17,711.6, the S&P 500 retreated 0.6% to 5,614.3, and the Dow Jones Industrial Average declined 0.7% to 40,913.7. Utilities and energy led the gainers, while healthcare was the steepest decliner intraday alongside technology and communication services.

The Food and Drug Administration will attempt to streamline regulations on new US drug manufacturing facilities to speed their completion and boost domestic supply under an executive order signed Monday by President Donald Trump. Alongside the executive order, Trump said an announcement on tariffs and drug pricing rules could come in the next two weeks, according to a news report from Biopharmadive.

Shares of Palantir Technologies ( PLTR ) sank 13% intraday, the steepest decline on the Nasdaq, even though the data analytics software maker lifted its full-year revenue outlook. Palantir's ( PLTR ) Q1 results were "equally impressive" as its Q4 performance, driven by strong growth in US commercial and government segments, Morgan Stanley said in a note.

Meanwhile, the US denied Japan's request for a complete exemption from a 10% reciprocal tariff and a country-specific tariff during recent negotiations, according to the Mainichi, citing sources. US officials, including Treasury Secretary Scott Bessent, reportedly informed Japan that the Trump administration is only willing to discuss the country-specific tariff cut of 14% currently suspended until early July.

The UK and India have, however, reached a free trade agreement. "These landmark agreements will further deepen our comprehensive strategic partnership, and catalyze trade, investment, growth, job creation, and innovation in both our economies," Indian Prime Minister Narendra Modi said.

Most US Treasury yields slid intraday, with the 10-year rate down 2.3 basis points to 4.32% and the two-year yield five basis points lower at 3.79%.

Gold futures jumped 3.1% to $3,425.1 per ounce.

West Texas Intermediate crude oil futures surged 3.6% to $59.17 a barrel, rebounding from a four-year low hit on Monday.

In economic news, Redbook US same-store sales accelerated by 6.9% from a year earlier in the week ended May 3 after a 6.1% increase in the previous week.

The Federal Open Market Committee is scheduled to release a policy statement at the conclusion of its two-day meeting at 2 pm ET on Wednesday. Analysts are expecting no change in the Federal Funds target rate range of 4.25% to 4.5%. According to the CME Group's FedWatch Tool, the probability of rates being left unchanged in June stood at 68% as of Tuesday afternoon, versus 35% a week ago.

Investors will watch out for President Trump's reaction to the policy decision on Wednesday as he has been calling on Powell to cut interest rates.

In company news, Constellation Energy ( CEG ) reported Q1 adjusted operating earnings of $2.14 per share, compared with $1.82 a year earlier. Operating revenue totaled $6.79 billion, up from $6.16 billion a year ago. Shares surged 12% intraday, the top performer on the S&P 500 and the Nasdaq.

DoorDash ( DASH ) reported Q1 revenue of $3.03 billion, up from $2.51 billion a year earlier but below the FactSet consensus of $3.1 billion. The company said it reached a deal for a cash acquisition of the entire share capital of Deliveroo for 2.9 billion British pounds ($3.86 billion). Shares of DoorDash ( DASH ) slumped 8%, among the worst performers on the Nasdaq.