Stocks fell on Tuesday, as the market struggled to rebound from Monday's steep declines that pushed the S&P 500 back into bear market territory and traders braced for a key monetary policy announcement from the Federal Reserve.
The Dow Jones Industrials fell 113.26 points to 30,403.52.
The S&P 500 dipped 1.48 points to 3,748.15.
The NASDAQ Composite moved higher 56.69 points to 10,868.80.
Shares of Oracle jumped more than 8% after the software company reported an earnings beat boosted by a “major increase in demand” in its infrastructure cloud business while FedEx shares soared 13% after announcing it would add three new directors to its board. The stock was on pace for its best day in more than 20 years.
Chevron and McDonald's rose about 2% and 1%, respectively, paring back some of the Dow's losses. The energy sector jumped 2%, boosted by shares of Occidental Petroleum and Phillips 66, which each rose more than 5%. Dow Transports also inched 2% buoyed by gains from FedEx and CH Robinson and was on pace for its best day since March.
Travel stocks slipped again with shares of Carnival and Norwegian Cruise Line down more than 1%. Airline stocks Delta and United also dipped about 1%. Meanwhile, Coinbase shares shed 4% after the company said it will cut 18% of its workforce.
Those losses came as expectations grow for the Fed to hike rates more than initially anticipated. Media reports circulated Monday that the Fed will “likely” consider a 75-basis-point increase, which is greater than the 50-basis-point hike many traders had come to expect. The Wall Street Journal reported the story first.
Investors digested another important inflation reading of May's producer price index on Tuesday. It showed wholesale prices rise 10.8% and hover near a record pace.
Treasury prices gained a bit, lowering yields to 3.43% from Monday's 3.38%. Treasury prices and yields move in opposite directions.
Oil prices gained $1.53 to $122.46 U.S. a barrel.
Gold prices dulled $19.60 to $1,812.20 U.S. an ounce.