U.S. Stocks Tumble as Investors Anticipate Fed Decision

U.S. stocks declined as investors remained cautious ahead of the Federal Reserve's policy announcement. Despite positive retail sales data, uncertainty loomed due to expected interest rate cuts and the Fed's economic projections. The Dow faced a prolonged losing streak, while energy sectors led the decline.

On Tuesday, U.S. stocks took a downward turn as investors displayed caution ahead of the Federal Reserve's final policy announcement of the year. Economic data revealed robust consumer spending, but concerns loomed over the Fed's decision on interest rates.

Despite a notable increase in U.S. retail sales, largely fueled by motor vehicle purchases, investor focus remained largely on the Fed's anticipated interest rate cut and its summary of economic projections. The central bank's approach in handling a resilient economy with sticky inflation is under the microscope, especially with policy expectations from the incoming Trump administration.

The Dow Jones Industrial Average fell, marking its longest losing streak since February 1978, while major S&P sectors, led by energy, dropped. Meanwhile, the Nasdaq continued to thrive, setting new records, thanks to boosts in consumer discretionary stocks, particularly Tesla.

(With inputs from agencies.)