12:47 PM EDT, 07/29/2025 (MT Newswires) -- US equity indexes fell in midday trading on Tuesday, a day ahead of the release of quarterly results from Mag-7 constituents and the Federal Reserve's July monetary policy statement.

The Nasdaq Composite retreated 0.2% to 21,126.1, after hitting a new all-time high of 21,303.96 earlier in the session. The S&P 500 slid 0.2% to 6,376.3, after making a fresh intraday record high of 6,409.26. The Dow Jones Industrial Average dropped 0.4% to 44,653.6, still trading close to its peak of 45,073.63.

Industrials let the decliners while real estate was among the top gainers intraday.

Microsoft ( MSFT ) and Meta Platforms ( META ) will report quarterly earnings after the bell on Wednesday, the day when the Federal Open Market Committee will close its two-day meeting and release a policy statement.

While the markets are certain that the Fed will leave interest rates unchanged in July, the probability of a cut in September is 62%, according to the CME Group's Fedwatch Tool. To that end, investors will look for a change in language in the Fed policy statement that opens the door for restarting policy easing next month, given the recent inflation data and a reduction in tariff uncertainty.

Commerce Secretary Howard Lutnick said that a 90-day extension of the trade truce with China is a likely outcome, a move largely anticipated following the US-EU trade deal, according to a D.A. Davidson note. Last week, the Trump administration unveiled a trade agreement with Japan.

President Donald Trump, who has often called on Canada to become the 51st US state, has warned of 35% punitive tariffs on certain types of imports from its northern neighbor after the Aug. 1 deadline.

US Treasury yields fell, with the 10-year yield down 7.2 basis points to 4.35% and the two-year rate 3.1 basis points lower at 3.89%.

West Texas Intermediate crude oil futures rose 1.7% to $67.82 a barrel.