02:37 PM EDT, 05/06/2025 (MT Newswires) -- US benchmark equity indexes were lower intraday as traders parsed the latest trade deficit report with an eye on the Federal Reserve's monetary policy meeting.

The Dow Jones Industrial Average was down 0.9% at 40,848.7 after midday Tuesday, while the Nasdaq Composite fell 0.8% to 17,704.4. The S&P 500 lost 0.7% to 5,609.5. Barring utilities and energy, all sectors were in the red, led by health care.

In economic news, the US goods and services trade deficit widened 14% to $140.5 billion in March, the Census Bureau and the Bureau of Economic Analysis reported. The consensus in a survey compiled by Bloomberg was for a deficit of $137.2 billion.

The deficit reading represents a record level as companies "rushed" to import goods ahead of the Trump administration's planned tariffs, Stifel said in a note to clients.

The European Union intends to hit nearly 100 billion euros ($113.63 billion) in US goods with additional tariffs if ongoing trade negotiations fails, Bloomberg News reported, citing sources.

US Treasury yields were lower intraday, with the two-year rate falling 4.6 basis points to 3.8% and the 10-year rate losing 2.3 basis points to 4.32%.

The Fed is scheduled to announce its latest interest rate decision Wednesday. Markets widely expect policymakers to leave rates unchanged, according to the CME FedWatch tool.

Fed Chair Jerome Powell is likely to reiterate that policymakers can wait for more clarity before reacting to US import tariffs with either rate cuts or rate hikes, Macquarie said in a Tuesday client note.

West Texas Intermediate crude oil was up 3.9% at $59.36 a barrel intraday. "Oil prices gained, rebounding on technical factors and bargain hunting," D.A. Davidson said in a client note.

In company news, DoorDash ( DASH ) announced two acquisitions, including an agreement to buy UK-based food delivery company Deliveroo for an equity value of about 2.9 billion British pounds ($3.88 billion), while reporting mixed first-quarter results. DoorDash ( DASH ) shares were down 7.8%, among the worst performers on the S&P 500 and the Nasdaq.

Constellation Energy ( CEG ) shares jumped 11%, the top gainer on the S&P 500, after the company logged better-than-expected first-quarter operating revenue and affirmed its full-year adjusted operating earnings outlook.

Advanced Micro Devices ( AMD ) and Arista Networks ( ANET ) are among the companies scheduled to report results after the closing bell Tuesday.

Gold was up 2.9% at $3,417.40 per troy ounce, while silver gained 2.7% to $33.36 per ounce.