Wall Street traded lower for the second consecutive day on Tuesday, as investor sentiment turned cautious with the U.S. presidential election just two weeks away.

Concerns over U.S. fiscal policies and potential shifts in economic direction fueled the pause in risk-taking.

The International Monetary Fund (IMF) upgraded its U.S. growth forecasts for 2024 and 2025 in the latest World Economic Outlook, while also flagging rising concerns about the country's debt trajectory, warning that with current large fiscal deficits, "the U.S. public debt is not stabilized."

Commodities were the standout performers on Tuesday, with both metals and...