04:30 PM EDT, 07/30/2024 (MT Newswires) -- US benchmark equity indexes closed mixed Tuesday as the Federal Reserve kicked off its two-day monetary policy meeting, with a decision on interest rates expected Wednesday.

The Nasdaq Composite dropped 1.3% to 17,147.4, while the S&P 500 fell 0.5% to 5,436.4. The Dow Jones Industrial Average rose 0.5% to 40,743.3. Technology saw the steepest decline among sectors, down 2.2%, while energy paced the gainers.

Markets widely expect that the central bank's Federal Open Market Committee will keep its benchmark lending rate unchanged Wednesday, according to the CME FedWatch tool.

Investors will be focused on the FOMC's statement and Fed Chair Jerome Powell's press conference "for any indication or lean towards" a rate cut in September, Stifel said in a Tuesday note to clients. "July is too soon for a policy adjustment, and even with September back on the table, a very compelling case would have to be made in the July and August (inflation) data," the brokerage wrote.

The US 10-year yield fell 3.2 basis points to 4.14% Tuesday, while the two-year rate lost 2.4 basis points to 4.36%.

In company news, Merck ( MRK ) lowered its 2024 earnings guidance to reflect the costs tied to its Eyebiotech acquisition despite slightly raising its revenue outlook midpoint, while posting stronger-than-expected second-quarter results. The company's shares slumped 9.8%, the steepest decline on the S&P 500 and the Dow.

Procter & Gamble ( PG ) was the second-worst performer on the Dow, down 4.8%, after the consumer goods company's earnings rose year over year during the fiscal Q4, while revenue fell as pricing and volume gains were offset by foreign-currency headwinds.

CrowdStrike ( CRWD ) shares sank 9.7%, the biggest drop on the Nasdaq and the second-worst on the S&P 500. Delta Air Lines ( DAL ) has hired attorney David Boies to pursue potential damages from CrowdStrike ( CRWD ) and Microsoft ( MSFT ) following a global tech outage earlier this month, CNBC reported late Monday. Microsoft ( MSFT ) shares closed 0.9% lower Tuesday, among the worst performers on the Dow.

PayPal ( PYPL ) was the top gainer on the Nasdaq and among the best on the S&P 500, up 8.6%, after the digital payments company reported stronger-than-expected increases in second-quarter results and sweetened its 2024 earnings guidance.

JetBlue Airways ( JBLU ) shares surged 12% after the carrier said it's deferring about $3 billion of capital expenditures through 2029 to improve cash flow and it posted a surprise second-quarter profit.

West Texas Intermediate crude oil fell 1% to $75.05 a barrel.

In economic news, US job openings and quits fell last month in a government report that BMO Capital Markets said keeps the door open for a September rate cut.

US consumer confidence increased this month amid stronger expectations while the annual inflation outlook held steady, the Conference Board reported.

US home prices increased in May at a similar sequential pace as that in the previous month, while the annual measure slowed down, S&P Global ( SPGI ) division S&P Dow Jones Indices said.

Gold rose 1.2% to $2,406.60 per troy ounce, while silver jumped 2.2% to $28.48 per ounce.