Inflation data is expected to show consumer prices cooled slightly on a month-over-month basis in May but core prices are likely to have remained elevated, and the Fed is widely expected to hold interest rates.
The Dow Jones Industrial Average slipped 0.5 percent shortly after trading started, to 32,741.25.
Futures for the benchmark S and P 500 fell 0.4 per cent and the Dow Jones industrials lost 0.3 per cent ahead of a vote by the full 435-member House on raising the government debt limit. S
According to a Bloomberg report, this year’s tech rally has lifted Apple, Microsoft, Alphabet and Amazon at least 30 percent and doubled the value of Nvidia and Meta
Regional banks provided some lift, with the KBW Regional Banks index up nearly 3.5% amid waning concerns of a liquidity crisis in the sector.
While all three major U.S. stock indexes ended down, the tech-heavy Nasdaq's losses were held in check by momentum megacaps including Amazon.com, Alphabet Inc and Microsoft Corp.
The S&P 500 was virtually unchanged in its first trading after closing out a second straight down week.
About 20 minutes into trading, the Dow Jones Industrial Average was up 0.1 percent at 33,348.85.
Apple shares surged more than four percent.
About 20 minutes into trading, the Dow Jones Industrial Average was up 1.4 percent at 33,578.98.
The S&P 500 was up 0.4% in afternoon trading, a touch higher than it was before the Fed's announcement.
The S&P 500 was up 0.1% in morning trading after slumping the prior day. The Dow Jones Industrial Average was up 3 points, or less than 0.1%, at 33,687, as of 10:30 a.m. Eastern time
The overnight sale of First Republic Bank's assets to JPMorgan Chase resolved the third U.S. bank failure in two months. Treasury yields rose in response and expectations firmed to near certain for one final U.S. rate hike this week.
Shortly after trading began, the Dow Jones Industrial Average rose 0.2 percent to 34,149.67 while the broad-based S&P 500 was flat at 4,168.59.
All three major U.S. stock indexes struggled for direction, with the benchmark S&P 500 and the Dow little unchanged and the tech-laden Nasdaq giving up an early lead to flip into negative territory.
The S&P 500's rally to start the year is set to be tested by a first-quarter earnings season that investors expect to show tepid results. So far, analysts have largely retained last week's expectations of a near-5 percent year-on-year fall in quarterly profits at S&P 500 companies
Tesla slumped around eight percent as it reported a drop in quarterly earnings and hinted that it could face further profit pressures from additional price cuts on its vehicles.
On Wall Street, the S&P 500 was roughly unchanged, but the Dow Industrials were weighed down by a 1.95% drop in Goldman Sachs after its quarterly results.
The Dow Jones Industrial Average picked up 0.1 percent to 34,048.97 and the S&P 500 rose 0.2 percent to 4,152.62 around 10 minutes into trading.
Following last month’s banking crisis, investors have become more convinced the Federal Reserve will cut rates in the second half to ward off an economic downturn
About 15 minutes into trading, the Dow Jones Industrial Average was up 0.3 percent at 33,486.25.
About 40 minutes into trading, the Dow Jones Industrial Average was down slightly at 33,594.68.
About 45 minutes into trading, the Dow Jones Industrial Average was up 1.0 percent at 33,616.42.
The benchmark S&P 500 posted a 7 percent gain for the first quarter, which ended on Friday, rebounding after a nearly 20 percent drop in 2022.
US consumer spending rose moderately in February, and while inflation cooled, it remained elevated enough to possibly allow the Federal Reserve to raise interest rates one more time this year, though expectations for a 25 basis point rate hike at its May meeting dipped to about 50 percent, with no hike seen to be just as likely