US stocks slip as the Fed begins its policy meeting and the 10-year yield hits a fresh 11-year high

Jerome PowellWin McNamee/Getty Images

• US stocks fell at the open Tuesday as the central bank began its latest policy meeting.

• Investors are bracing for another big rate hike from the Fed after a hot August inflation report.

• The 10-year Treasury yield jumped to a fresh 11-year high.

US stocks fell Tuesday as investors eyed the beginning of the latest central bank policy meeting that could spur more market fallout.

The meeting concludes on Wednesday, and Wall Street is anticipating a 75-basis-point increase in benchmark interest rates after August's inflation report came in hot last week. But some investors are bracing for a hike of 100 basis points.

The 10-year Treasury yield soared to an 11-year high of 3.518% Tuesday. The 2-year yield climbed further as well to nearly 4%, with the deeper inversion signalling growing worries over longer-term economic health in the US.

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

• S&P 500: 3,858.55, down 1.06%

• Dow Jones Industrial Average: 30,705.31, down 1.01% (314.37 points)

• Nasdaq Composite: 11,427.79, down 0.93%

Here's what else to know: 

• The central bank will potentially go too far with its rate hike schedule and spur unnecessary turmoil by being too hawkish, according to Guggenheim Partners' investment chief Scott Minerd.

• Sanctions on Russia are taking a stronger toll on the country and the Kremlin is considering a $50 billion tax on oil and gas exports.

• Meanwhile, Russia's seaborne crude exports hit a five-month low as Europe moves further away from Moscow's oil.

• China is picking up the slack in Russia's energy exports, though, and continues to show a willingness to do business with the Kremlin.

In commodities, bonds and crypto:

• Oil continued to slide, with West Texas Intermediate down 1.27% to $84.59. International benchmark Brent crude fell 0.64% to $91.40.

• Gold slipped 0.61% to $1,665.34 an ounce.

• The 10-year yield climbed 9.2 basis points to 3.581%.

• Bitcoin fell 0.92% to $18,968.67.

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