US stocks open lower as Nasdaq retreats from record

Cityscape thailand with investment theme background and stock market chart
Cityscape thailand with investment theme background and stock market chart

Wall Street stocks opened lower Tuesday, giving back some of Monday's gains ahead of a two-day Federal Reserve meeting expected to maintain aggressive stimulus measures.

About 15 minute into trading, the Dow Jones Industrial Average stood at 27 281.86, down 1.1%.

The broad-based S&P 500 shed 0.9 percent to 3,204.12, while the tech-rich Nasdaq Composite Index lost 0.3 percent at 9,898.26, edging down from Monday's record close.

The Fed meeting will be the first since the US economy began to meaningfully reopen from the coronavirus shutdowns that froze much activity in March, April and part of May. The gathering also comes after Friday's surprisingly good jobs report.

Still, most analysts do not expect any kind of wavering from the Fed as far as efforts to boost activity. Fed Chair Jerome Powell has warned of long-term risk to the US economy if Washington doesn't provide enough support.

"We anticipate the FOMC will reaffirm its dovish forward guidance but refrain from offering any specific date- or data-contingent forward guidance," said a note from Oxford Economics.

"The policy rate will remain pegged near zero until the recovery is firmly in place."

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