NEW YORK - US stocks finished lower on Tuesday as investors digested a wave of corporate headlines and ongoing political gridlock in Washington.

The Dow Jones Industrial Average slipped 91.99 points, or 0.2 percent, to 46,602.98. The S&P 500 dropped 25.69 points, or 0.38 percent, to 6,714.59, snapping a seven-day winning streak. The Nasdaq Composite Index declined 153.3 points, or 0.67 percent, to 22,788.36 after touching new intraday highs earlier in the session.

Six of the 11 primary S&P 500 sectors closed in the red, led by consumer discretionary and communication services, which lost 1.43 percent and 0.73 percent, respectively. Meanwhile, consumer staples and utilities gained 0.86 percent and 0.42 percent.

Hopes for a quick resolution to the US federal government shutdown faded as the Senate on Monday failed for the fifth time to pass a House bill that would fund the government through Nov 21. The measure fell short of the 60 votes needed to advance, with lawmakers largely voting along party lines.

In corporate news, AppLovin shares surged 7.64 percent to lead the S&P 500 and Nasdaq, rebounding from a 14 percent plunge the previous day following reports that the US Securities and Exchange Commission was investigating the company's data-collection practices after a whistleblower's complaint.

Trilogy Metals tripled after the White House said it would reverse a Biden-era block on Alaska's Ambler Road project and take a 10 percent stake in the Canadian firm to support mining exploration.

Elsewhere, IBM rose about 1.5 percent after announcing a partnership with AI startup Anthropic to integrate the Claude large language model into IBM's enterprise software. Ford Motor fell 6.14 percent after reports that a fire at a major aluminum supplier could disrupt production for months. Oracle dropped 2.52 percent amid concerns that its cloud-computing margins are smaller than expected.

"There's a lot of interest in capex spending and making sure that you're first or you have the ability to source the technology you need to grow profits in this new AI realm," Ameriprise's chief market strategist Anthony Saglimbene told CNBC. "Investors, at some point, will look at how much money is being spent and say, 'What's the return on investment?'"

"It doesn't mean that AI is in a bubble. It just means that there's probably some opportunity for a little bit of reset in expectations, particularly about the results and profitability that come from just this enormous amount of money that's being thrown into AI right now," he continued.

Tesla shares fell 4.45 percent after the company unveiled lower-cost Model Y and Model 3 vehicles, erasing some of Monday's rally. Amazon shares edged higher as the e-commerce giant kicked off its two-day "Prime Big Deal Days" sales event.