• The Nasdaq Composite lost nearly 2% on Tuesday.
• Meta is getting rid of its third-party fact-checking program.
• Tens of thousands of people evacuated their homes in Los Angeles as wildfires grew quickly.

Here are five key things investors need to know to start the trading day:

1. Tech sell-off

Stocks fell on Tuesday as investors worried about economic data and tech names tumbled. The S&P 500 dropped 1.11%, while the Dow Jones Industrial Average fell 178.20 points, or 0.42%, for the day. The Nasdaq Composite was the worst of the three major averages, slumping 1.89%, as Nvidia shares fell 6.2% and Tesla slipped 4%. The declines also came as the Institute for Supply Management released data that raised concerns about stickier inflation. The markets will be closed Thursday for a national day of mourning for former President Jimmy Carter. Follow live market updates.

2. Meta-morphosis

Facebook and Instagram owner Meta is getting rid of its third-party fact-checking services. Instead, the tech company will be moving to a "Community Notes" model on its platforms, similar to the one used by Elon Musk's X. Meta, which announced the changes on Fox News, is also ending restrictions on subjects like immigration and gender. "The recent elections also feel like a cultural tipping point towards once again prioritizing speech, so we're going to get back to our roots and focus on reducing mistakes, simplifying our polices and restoring free expression on our platforms," CEO Mark Zuckerberg said. President-elect Donald Trump praised the changes.

3. What's AI worth?

Artificial intelligence keeps drawing big money. AI startup Anthropic is in late-stage talks to raise as much as $2 billion at a $60 billion valuation, CNBC's Hayden Field reported. The AI company, which was founded by former research executives from rival OpenAI, has backing from Amazon and is the creator of the AI chatbot Claude. The most recent funding round is being led by Lightspeed Venture Partners, according to a person familiar with the matter.

4. Holiday hauls

Online shoppers weren't afraid to open their virtual wallets this holiday season. Online spending increased 8.7% in November and December from the same period last year, according to Adobe Analytics. That was spurred by discounts, as well as AI-powered shopping assistants. The two biggest category changes year-over-year were groceries, which jumped nearly 13% to $21.5 billion, and cosmetics, which saw a 12.2% rise to $7.7 billion.

5. LA wildfires

Tens of thousands of people evacuated their homes in Los Angeles as wildfires grew rapidly, sweeping across an affluent section of the city. The Palisades Fire has torn through nearly 3,000 acres, while the the Eaton Fire has burned 1,000 acres and the Hurst Fire has affected 500 acres. The fires, which were sparked by strong winds and dry conditions, are 0% contained.

— CNBC's Pia Singh, Ashley Capoot, Jonathan Vanian, Hayden Field, Melissa Repko, Reuters and NBC News contributed to this report.