US stock indices fell at the start of trading on Tuesday, with Wall Street participants remaining cautious on the eve of the Federal Reserve's rate decision.
Half an hour after the opening bell, the Dow Jones Industrial Index dropped 0.65% to 52,082 points. The broad-based S&P 500 shed 0.17% to 7,607 points. The tech-heavy Nasdaq 100 eased only slightly to 29,126 points.
The Nasdaq had come under heavier pressure earlier in the week amid ongoing debate over the security implications of artificial intelligence, adding to its relative weakness compared with the other major indices.
Tuesday's session marks the Fed's third rate-setting meeting under new chairman Kevin Warsh, who is widely expected to raise benchmark interest rates for the first time. Financial markets broadly anticipate a 0.25-percentage-point increase, which would place the federal funds rate in the 3.75% to 4.00% range, reflecting persistent high inflation concerns.
Uncertainty remains elevated, however, as Warsh has deliberately avoided sending clear signals to markets about the path ahead.
