Dow Drops Triple Digits as Fed Decision Nears

Stocks retreated on Tuesday as Wall Street awaited the results of this week’s Federal Reserve policy meeting.

The Dow Jones Industrials came off its lows of the day, but still fell short of breakeven 106.04 points to 34,518.26.

The S&P 500 index sank 9.51 points to 4,444.01.

The NASDAQ index hesitated 32.05 points to 13,678.19.

Disney slid more than 3% after announcing plans to nearly double its investment in its cruise and parks business. Deere, often seen as a barometer of future economic activity, fell more than 2% in the session after investment bank Evercore ISI downgraded the stock due to agricultural production concerns.

Grocery delivery stock Instacart climbed more than 20% after going live on the market.

Leadership of the striking United Auto Workers union said more workers could be called on to withhold labor if progress is not made by a Friday deadline. Stellantis advanced more than 2% in the session, while Ford and General Motors added more than 1%.

The central bank’s two-day meeting begins on Tuesday. The Fed is not expected to raise rates when announcing its decision Wednesday, with traders pricing in a 99% probability that the central bank skips a hike. Traders are putting just a 29% chance of a hike in November.

The Fed will also offer economic forecasts on Wednesday. Investors will watch for commentary around the path of inflation and future path of interest rates.

Prices for the 10-year Treasury sagged, raising yields to 4.37% from Monday’s 4.31%. Treasury prices and yields move in opposite directions.

Oil prices forged ahead 11 cents to $91.59 U.S. a barrel.

Gold prices turned lower 40 cents to $1,953.00 U.S. an ounce.