04:55 PM EDT, 09/17/2024 (MT Newswires) -- The Dow Jones Industrial Average and the S&P 500 closed little changed Tuesday as the Federal Reserve kicked off its two-day monetary policy meeting.

The S&P 500 and the Dow finished the session at 5,634.6 and 41,606.2, respectively, while the technology-heavy Nasdaq Composite gained 0.2% to 17,628.1. On Monday, the Dow closed at its all-time high. Energy led the gainers among sectors Tuesday, while health care saw the steepest decline.

There's currently a 63% probability that the central bank's monetary policy committee will reduce its benchmark lending rate by 50 basis points, with the remaining odds in the favor of a 25-basis-point reduction, according to the CME FedWatch tool.

"The committee is likely to maintain a base case of (25-basis-point) cuts beginning this week, with a consideration but not a commitment to action at every subsequent meeting," Stifel said in a Tuesday note to clients.

The US two-year yield rose 4.8 basis points to 3.60%, while the 10-year rate increased 2.5 basis points to 3.65%.

In economic news, US retail sales in August increased against Wall Street's expectations for a drop, while the pace of growth slowed amid declines in gas station and motor vehicle sales, according to Census Bureau data.

"Based on the health of consumer spending alone, the Fed would have little reason for an aggressive start to the easing cycle, and we continue to lean toward a smaller move," BMO Capital Markets said in a note to clients.

Separately, Morgan Stanley said it expects the Fed to cut interest rates "in a string of" 25-basis-point moves as the retail sales report confirmed that consumer spending continues to be strong.

US homebuilder confidence improved in September for the first time in five months amid declining mortgage rates, according to the National Association of Home Builders and Wells Fargo.

West Texas Intermediate crude oil rose 1.6% to $71.19 a barrel Tuesday.

In company news, Moderna ( MRNA ) shares increased 4.1%, the top performer on the Nasdaq and among the best on the S&P 500. The drugmaker said it received Health Canada's approval for its updated Spikevax COVID-19 vaccine targeting the KP.2 sub-lineage of SARS-CoV-2 in individuals aged six months and above.

Intel ( INTC ) was the top Dow performer and among the best on the Nasdaq, up 2.7%. Late Monday, the chipmaker outlined plans to turn its manufacturing business into an independent subsidiary and expand its partnership with Amazon.com's ( AMZN ) cloud computing unit to produce custom artificial intelligence chips. Amazon ( AMZN ) shares closed 1.1% higher Tuesday.

Accenture ( ACN ) shares fell 4.8%, the steepest decline on the S&P 500. The company is delaying most staff promotions through June, Bloomberg News reported, citing unnamed sources. Separately, Accenture ( ACN ) said it invested in technology firm Martian.

Gold dropped 0.5% to $2,596.40 per troy ounce, while silver lost 0.3% to $31.05 per ounce.