Markets See Red Ahead of Federal Reserve Announcement

U.S. stocks fell on Tuesday as investors awaited the Federal Reserve's policy announcement. Consumer spending showed strong results, with retail sales rising, partly due to car sales. Investors anticipate a 25 basis points rate cut and await guidance on future Fed actions amid economic resilience and expected policy changes.

U.S. stocks faced a downturn on Tuesday, with the Dow experiencing its ninth consecutive loss, as investors exercised caution ahead of the Federal Reserve's upcoming policy announcement. Recent economic data revealed robust consumer spending, with retail sales seeing a notable rise, particularly in motor vehicle purchases, reflecting strong economic momentum.

The market's primary focus remained on the Fed's anticipated interest rate cut of 25 basis points slated for Wednesday. Attention is particularly drawn to the Fed's summary of economic projections, which will signal the central bank's future approach to rate cuts, especially with a resilient economy and persistent inflation.

The Dow Jones Industrial Average dropped 272.77 points, marking its longest losing streak since 1978, while the S&P 500 and Nasdaq also saw declines. Investor uncertainty led to fluctuations in Treasury yields and heightened the CBOE Volatility Index, as the market braced for potentially assertive measures from the Federal Reserve's meeting.

(With inputs from agencies.)