Stocks Slide Along With Oil Prices, Fed In Focus -- U.S. Commentary

(RTTNews) - U.S. stocks fell Tuesday as traders moved to the sidelines ahead of tomorrow's interest rate decision from the Federal Reserve.

Analysts think the Fed will raise interest rates, but there is much uncertainty about the outlook for further tightening.

It is hoped that Fed Chair Janet Yellen will shed some light at her press conference accompanying the decision Wednesday at about 2:30 pm ET.

The S&P 500 fell 8 points, or 0.3%, to close at 2,365 as the energy sector dropped 1.1%. The Dow Jones Industrial Average shed 44 points, or 0.2%, to end at 20,837 while the Nasdaq Composite Index declined 18 points, or 0.3%, to close at 5,856.

Weakness was evident in the energy sector, as crude oil futures extended steep recent losses.

April WTI oil was down 68 cents, or 1.4%, to settle at $47.72/bbl. Prices have dropped seven straight sessions to the lowest since November.

In economic news, wholesale inflation data solidified expectations of a U.S. interest rate hike tomorrow.

Asian stocks turned in a mixed performance on Tuesday as tumbling oil prices, European political risks and an impending Federal Reserve meeting remained high on investors' radar. Meanwhile, a slew of positive data out of China drew a lukewarm response.

China's Shanghai Composite index inched up 2.30 points or 0.07 percent to close at 3,239.33.

Japanese shares fell from a 15-month high as the dollar fell against the yen ahead of this week's BoJ and Federal Reserve monetary policy meetings. The Nikkei average dropped 24.25 points or 0.12 percent to finish at 19,609.50.

European stocks were mostly lower on Tuesday as markets turned their attention towards the Dutch election and the Fed's rate hike decision.