Stock market today: US stocks dip as 2-day Fed meeting kicks off

U.S. Federal Reserve Board Chairman Jerome Powell speaks at a news conference at the headquarters of the Federal Reserve on December 13, 2023 in Washington, DC. The Federal Reserve announced today that interest rates will remain unchanged.Win McNamee/Getty Images

• Stock markets slipped as investors prepare for the Fed's June policy meeting.

• The FOMC meeting will end Wednesday, and will help determine where interest rates are going.

• May CPI will also release on Wednesday, offering more rate insight.

US stocks dropped on Tuesday as traders readied for the Federal Reserve's June meeting.

The two-day event starts Tuesday, and will conclude with a policy announcement and commentary from Chairman Jerome Powell on Wednesday afternoon. Investors are convinced that interest rates will remain unchanged, futures markets data shows.

Upcoming inflation data on Wednesday should also help determine where interest rates are headed beyond in the coming months. If the May consumer price index report comes in cooler-than-expected, odds of a September rate cut could rise.

Currently, markets are divided on whether one or two rate cuts are still possible this year, especially after last week's hot jobs data.

Apple stock recovered its losses from Monday's session, rising 2% a day after the iPhone maker unveiled its artificial intelligence game plan. Wall Street is abuzz, with analysts eyeing a big upgrade cycle as consumers go in for the latest AI offerings.

Here's where US indexes stood at the 9:30 a.m. opening bell on Tuesday:

• S&P 500: 5,343.15, down 0.32%

• Dow Jones Industrial Average: 38,617.26, down 0.65% (-250.78 points)

• Nasdaq composite: 17,159.91, down 0.19%

Here's what else happened today:

• Here's how much the S&P could fall if the Fed fails to cut rates this year.

• America's own internal dysfunction is the biggest driver of de-dollarization, think tank experts say.

• The inverted yield curve has been flashing for 20 months now - the recession indicator might still be right, its inventor says.

• The 'bubble of all bubbles' will burst in 2025, one economist says.

In commodities, bonds, and crypto:

• West Texas Intermediate crude oil slipped 0.06% to $77.53 a barrel. Brent crude, the international benchmark, inched up by 0.05% to $81.83 a barrel.

• Gold edged higher by 0.19% to $2,315.45 per ounce.

• The 10-year Treasury yield dipped one basis point to 4.453%.

Bitcoin slumped 3.4% to $66,922.

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