U.S. stock markets fell on Tuesday as the Federal Reserve began its two-day policy meeting, with investors closely monitoring for potential signals about future interest rate decisions.
The downturn in equities reflects heightened caution among market participants who are anticipating fresh guidance from the central bank. While the Fed is widely expected to leave interest rates unchanged at this meeting, investors are looking for clues regarding the potential timing of the first rate cut amid ongoing economic uncertainty and persistently high inflation.
Analysts say markets have been jittery in recent weeks, driven by mixed economic indicators that complicate the Fed’s path forward. A recent series of robust labor market reports and sticky inflation data have raised concerns that rate cuts may be pushed further into the latter half of the year.
Tuesday’s decline affected major stock indices across the board. The S&P 500 and Dow Jones Industrial Average both traded lower, while the Nasdaq also saw a moderate drop, reversing some of the gains made earlier this quarter.
Federal Reserve Chair Jerome Powell is scheduled to hold a press conference at the close of the meeting on Wednesday, during which he is expected to offer further insight into the economic outlook and future policy direction.
Until then, markets are likely to remain volatile as investors weigh economic data and anticipate the central bank’s next steps.
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