Stocks slipped lower Tuesday as market participants awaited the Federal Reserve's upcoming policy decision due out Wednesday afternoon. The Dow Jones Industrial Average fell more than 100 points, while the S&P 500 Index and Nasdaq Composite lost about 0.2% each.
Here's how the market settled on Tuesday:
S&P 500 Index (NYSE: SPY): -0.22% or -9.58 points to 4,443.95
Dow Jones Industrial Average (NYSE: DIA): -0.31% or -106.57 points to 34,517.73
Nasdaq Composite Index (NASDAQ: QQQ): -0.23% or -32.05 points to 13,678.19
Driving market moves, the Federal Open Market Committee (FOMC) kicked off its two-day meeting on Tuesday. Policymakers are not expected to raise interest rates -- traders are currently pricing in a 99% chance the Fed will hold rates in its September decision, according to CME Group's FedWatch tool -- and investors will react to economic forecasts from the central bank from its policy statement on Wednesday.
Also in the spotlight, grocery delivery stock Instacart (NASDAQ: CART) jumped more than 12% in its debut on the Nasdaq Tuesday. Shares initially popped 40% to open at $42 per share, but closed at $33.70 to bring the company's valuation to about $11 billion. Instacart competes with companies including DoorDash (NYSE: DASH), Amazon (NASDAQ: AMZN), Walmart (NYSE: WMT) and Target (NYSE: TGT).
Impacting the Dow, Disney (NYSE: DIS) shares fell after the entertainment giant announced plans to increase its investment in its cruise and parks business by about $60 billion over the next decade, according to a new U.S. Securities and Exchange Commission (SEC) filing.
Elsewhere, Pinterest (NYSE: PINS) shares rose after the social media company forecasted strong year-over-year revenue growth during its first investor day on Tuesday. The company also called for a compound annual growth rate over the next three to five years in the mid to high teens -- signaling growth is accelerating from the slowdown seen in fiscal 2022 and 2023.
TD Cowen analyst Andrew Charles downgraded Starbucks' (NASDAQ: SBUX) stock to Market Perform from Outperform, citing slowing consumer spending and macroeconomic headwinds in China.
"While we forecast consensus 2023-25E EPS is achievable, in our view the multiple isn't discounted enough vs the 5Y [average] that leads us to expect shares will be in a holding pattern," Charles wrote in a note on Tuesday. "We like the long-term story but move to the sidelines as we monitor China macro & competitive dynamics."
For Wednesday, traders will focus on the Federal Reserve's policy decision and Fed Chair Jerome Powell's post-meeting remarks slated for the afternoon.