What the Fed does next will surely have an impact on the market's trajectory.

The central bank is expected to leave its key short-term interest rate unchanged Wednesday and to stress its new watchword — "patient"— in conveying its intention to leave rates alone for the foreseeable future.

The Fed has made clear that with a dimmer economic picture in both the United States and globally, it no longer sees the need to keep raising rates as it did four times in 2018. Among the key factors, besides slower growth, are President Donald Trump's trade war with China, continually low inflation levels and Prime Minister Theresa May's struggle to execute Britain's exit from the European Union.

Signs of a modest economic slowdown, such as a weak factory orders report on Tuesday, may help keep the Fed patient and on hold for a longer amount of time, said Warne.

"It's a slightly bad-news-is-good-news situation," she said.

There has also been an absence of sharp bad news surprises, she said, which has given investors confidence that there is less volatility than previously feared.

Financial, utilities and industrial stocks weighed the most on the market Tuesday. Fifth Third Bancorp dropped 3.3 percent, FirstEnergy slid 2 percent and railroad operator Union Pacific lost 3.3 percent.

Companies that reported disappointing quarterly results also fell.

DSW dropped 12.9 percent after the footwear retailer surprised investors with a loss during the fourth quarter. The company swung to a loss of 7 cents per share, while Wall Street anticipated 4 cents per share in profit. Expenses jumped during the quarter and DSW had to deal with a hefty charge.

Tilray slid 3.4 percent after the medical cannabis company reported a wider loss for the fourth-quarter than Wall Street analysts expected.