US stocks slid on Tuesday as a sell-off in oil prices weighed on shares of energy companies and as investors await the Federal Reserve’s latest monetary policy decision.
The S&P 500 was down 0.3 per cent to 2,366.02 — led by a 1.4 per cent drop in energy shares. The Dow Jones Industrial Average declined 0.1 per cent to 20,854.30, while the Nasdaq Composite fell 0.4 per cent to 5,854.48.
Volume was running about 25 per cent below usual levels for this time of day, according to Bloomberg data, as a winter storm thrashed New York.
The sell-off in oil prices came as Opec raised its 2017 estimates for oil-output by non-Opec countries.
West Texas Intermediate, the US oil marker, slid 1.9 per cent to $47.50 a barrel, while Brent, the global oil benchmark, declined 1.5 per cent to $50.60 a barrel.
The risk-off sentiment also came as traders expect the Fed to add to its December rate rise on Wednesday. Despite snowy weather in Washington, the central bank’s two-day meeting started as expected this morning.
Elsewhere, US Treasuries advanced, with the yield on the US 10-year note, which moves inversely to price, down 1.8 basis points to 2.608 per cent. Spot gold prices were down a modest 0.1 per cent to $1,202.92 a troy ounce.