Stocks fell broadly in moderate trading Tuesday as traders battened down the hatches for a two-day, closed-door meeting of Federal Reserve policymakers.
The Fed is widely expected on Thursday to raise its short-term interest-rate target for the 17th straight time, to 5.25 percent, and might hint at further rate increases ahead.
There was no sign of so-called window dressing by stock fund managers as the second quarter neared its close. Fund managers often bid up stocks they own to boost their quarterly returns.
Energy stocks were the only winners among 10 major stock market sectors. Traders expect that U.S. oil inventories are thinning as the summer driving season unfolds.
The top four gainers in the Standard & Poor’s 500 index were big oil stocks, led by Exxon Mobil. Exxon, which is also a component of the Dow Jones industrial average, rose 83 cents, to $59.65.
In futures trading, crude oil for August delivery rose 12 cents a barrel, to $71.92.
The Dow sagged 120.54 points, to 10,924.74, led by losses by Boeing, General Motors and 3M. Besides Exxon, only three Dow stocks posted gains: Altria Group, Microsoft and AT&T.
The Standard & Poor’s 500 index lost 11.36, to 1239.20. The Nasdaq composite index fell 33.42, to 2100.25. The Russell 2000 index of small-company stocks dropped 11.70, to 686.94.
New York Stock Exchange volume reached 1.54 billion shares. Losers outnumbered winners by an 8-3 ratio among NYSE-listed stocks.
Nasdaq volume totaled 1.78 billion shares, as losers topped winners by a 3-1 ratio.
Among stocks in the news, shares of footwear maker Nike dropped in after-hours trading. The company reported a decline in fiscal fourth-quarter profit, contrary to the gain analysts had expected.
Banking firm Wells Fargo declared a 2-for-1 stock split, a share repurchase program and an 8 percent increase in its quarterly dividend.
Treasury securities ended a nine-session losing streak, sending prices modestly higher and interest rates lower. The government sold $22 billion of 2-year Treasury notes, at a yield to investors of 5.24 percent, up sharply from 4.93 percent at the May auction of 2-year notes. The Treasury will auction $14 billion of 5-year notes on Wednesday.
