USA stocks close lower, Dow drops 177 points

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US stocks traded sharply lower on Tuesday, falling for a second day as the first major sell-off of the new year intensified.

The Dow Jones Industrial Average was retreating sharply lower on Tuesday, with the blue-chip gauge on pace for its worst single-session decline in about 8 months. The 30-stock index was also on track for its biggest two-day points drop since September 2016.

Treasury long-dated yields rose in choppy trading ahead of a slew of events this week such as a Federal Reserve monetary policy decision which could help shed more light on the outlook for interest rates this year.

UnitedHealth Group Inc UNH.N was the biggest drag on the Dow, falling 4.3 percent.

Federal Bureau of Investigation deputy director Andrew McCabe quits amid Trump criticism
McCabe served as the agency's acting director this summer after Trump fired former director James Comey in May. He stepped down Monday , and he will be on leave until he retires sometime in the spring.

Among earnings, Pfizer shares fell 3 percent.

Winners and Losers: Wynn Resorts sunk 9.32 percent as the hotel and casino company continues to feel the heat from the Wall Street Journal's reporting of sexual misconduct allegations against CEO Steve Wynn. Among companies that have reported so far, 80 percent are exceeding analysts' expectations, according to Thomson Reuters data. Chevron (NYSE:CVX) was down 2.5%.

The market selloff came on the heels of President Trump's first State of the Union address Tuesday evening.

The S&P 500 posted 17 new 52-week highs and four new lows; the Nasdaq Composite recorded 41 new highs and 43 new lows.