Stocks slid on Tuesday as the Federal Reserve kicked off its two-day policy meeting and Wall Street looked ahead to another large rate hike due out Wednesday.
The Dow Jones Industrials stumbled 378.53 points to begin the day's trading at 30,641.15.
The S&P 500 removed 46.1 points, or 1.2%, to 3,853.53.
The NASDAQ Composite let go of 101.4 points to 11,433.62.
Meanwhile, Ford shares slumped 9% after it announced that supply chain issues would cost the automaker an extra $1 billion in the third quarter.
The Federal Open Markets Committee begins its September meeting on Tuesday, where central bankers are expected to announce a 0.75 percentage point rate hike on Wednesday.
Stocks have tumbled in recent weeks as comments from Fed Chair Jerome Powell and an unexpectedly hot August consumer price index report caused traders to prepare for even higher rates until inflation cools.
Housing market data released Tuesday showed an unexpected jump in starts for August, although building permits saw the biggest decline since April 2020.
Stock wavered between gains and losses throughout the session, with the 30-stock index down as much as 263 points earlier in the day. At session lows, the S&P 500 and NASDAQ shed more than 0.9% each.
Investors are focused on the Fed's latest policy meeting slated to begin Tuesday. The central bank is expected to raise interest rates by another three-quarters of a point, though investors are also watching for guidance about corporate earnings before the next reporting season begins in October.
Beyond the Fed meeting, there are just a few economic data releases on deck this week, including August housing starts on Tuesday and initial jobless claims on Thursday.
Treasury prices lost sharply, raising yields to 3.58% from Friday's 3.49%. Treasury prices and yields move in opposite direction.
Oil prices staggered $2.21 to $83.52 U.S. a barrel.
Gold prices dipped $4.60 to $1,673.60 U.S. an ounce.