U.S. stock indexes edged lower Tuesday as investors worried about the potential impact of a slowing housing market on corporate earnings and the broader economy. Recent data has suggested a cooling in the once-booming housing sector, leading to concerns about reduced consumer spending and investment.

The Dow Jones Industrial Average fell slightly, while the S&P 500 and Nasdaq Composite also experienced modest declines. Homebuilder stocks were among the hardest hit, reflecting investor anxiety about the sector’s future performance.

Analysts are closely monitoring upcoming economic releases, including housing starts and existing home sales data, for further clues about the direction of the housing market. The Federal Reserve’s monetary policy decisions, particularly regarding interest rates, are also expected to play a significant role in shaping the housing market’s trajectory.

Some economists believe that a moderate slowdown in housing activity would be healthy for the overall economy, preventing a potential bubble and promoting sustainable growth. However, a sharp and prolonged downturn could trigger a wider economic slowdown, impacting various sectors, including manufacturing, retail, and finance.