02:01 PM EST, 12/17/2024 (MT Newswires) -- US benchmark equity indexes were lower intraday as the Federal Reserve kicked off its two-day monetary policy meeting and investors assessed the latest economic data.

The Dow Jones Industrial Average was down 0.7% at 43,406.7 after midday Tuesday, while the S&P 500 fell 0.4% to 6,049.5. The Nasdaq Composite lost 0.3% to 20,119.5. Among sectors, energy saw the biggest drop. Only consumer discretionary and real estate were in the green.

Markets widely expect that the central bank's Federal Open Market Committee will deliver a quarter-percentage-point reduction in its benchmark lending rate Wednesday, according to the CME FedWatch tool. That would mark a second consecutive 25-basis-point decrease following a 50-basis-point reduction in September.

The latest rate decision will be accompanied by the FOMC's updated economic projections.

Fed Chair Jerome Powell is "likely to stress a slower pace of easing ahead, uncertainty over the neutral rate, and the data-dependence of the policy outlook," Macquarie said in a note emailed to clients on Tuesday.

The US 10-year yield fell one basis point to 4.39% intraday, while the two-year rate was little changed at 4.25%.

In economic news, US retail sales rose at a faster-than-projected pace last month, driven by spending on autos, data from the Census Bureau showed.

US homebuilder confidence held steady in December as high prices and mortgage rates offset renewed optimism about an improved regulatory environment next year, according to National Association of Home Builders and Wells Fargo data.

"While builders are expressing concerns that high interest rates, elevated construction costs and a lack of buildable lots continue to act as headwinds, they are also anticipating future regulatory relief in the aftermath of the election," NAHB Chairman Carl Harris said.

West Texas Intermediate crude oil was down 1.2% at $69.83 a barrel intraday. Oil prices dropped on "renewed concerns" about demand in China, D.A. Davidson said in a note to clients.

In company news, Amentum (AMTM) shares slumped 11%, the steepest decline on the S&P 500. Late Monday, the company reported that its fiscal fourth-quarter pro forma non-GAAP net income and revenue fell year over year.

Pfizer ( PFE ) was the best performer on the S&P 500 intraday Tuesday, up 4.6%, after the pharmaceutical giant projected higher earnings for 2025 and revenue in line with this year's likely result as it looks to continue "disciplined execution" and cost cuts.

Nike's ( NKE ) stock is expected to rebound over time as signs emerge that the sportswear giant's turnaround efforts under a new chief executive are materializing, Truist Securities said in a client note. The company's shares were up 1.7%, the top gainer on the Dow.

Gold was down 0.3% at $2,661.60 per troy ounce, while silver fell 0.5% to $30.90 per ounce.