The Dow Jones Industrial Average closed lower for the first time in five days on Tuesday, led by declines in Apple, while investors puzzled over conflicting reports over the progress of U.S.-China trade negotiations.
The 30-stock index dropped 26.72 points to close Tuesday at 25,887.38. Apple was among the worst performers in the index, sliding 0.8%
The S&P 500 eased 0.37 points to 2,832.57
The NASDAQ Composite held onto gains of 9.47 points to 7,723.95
Caterpillar shares closed flat after rising as much as 1.3% earlier in the day. Boeing also pared gains, closing 0.3% higher. Both stocks are seen as trade bellwethers given their exposure to overseas markets.
Stocks started to roll over amid reports that U.S. officials are worried China may be pushing back against U.S. demands in the countries' ongoing trade talks. The report also said Chinese negotiators are worried they have not received assurances that tariffs imposed on Chinese goods would be lifted once a deal is struck.
The Fed kicked off its two-day policy meeting on Tuesday. Market expectations for a rate hike are at zero, with most investors pricing in no change in policy. However, investors will look for clues on the Fed's economic outlook.
Stocks have been on a tear since the Fed's last meeting in late January. In that time, the S&P 500 has risen more than 5%. The broad index is also up more than 12% for 2019 in part because investors expect less policy tightening for the year.
Prices for the benchmark 10-year U.S. Treasury slumped, raising yields to 2.61% from Monday’s 2.59%. Treasury prices and yields move in opposite directions.
Oil prices were down 24 cents to $58.85 U.S. a barrel.
Gold prices gained $4.70 to $1,306.20 U.S. an ounce.
