Stock market today: US stocks fall as Wall Street waits for the Fed

NEW YORK (AP) — U.S. stocks are falling as Wall Street waits to hear from the Federal Reserve, which will make its latest announcement on interest rates Wednesday. The S&P 500 was down 0.5% in early trading Tuesday. The Dow Jones Industrial Average was down 128 points, and the Nasdaq composite was off 0.9%. The recent mini-recovery coincided with a quieter White House when it comes to tariffs. Last week President Donald Trump threatened huge taxes on European wine. Tesla fell again. The electric-vehicle maker’s stock has been struggling on worries that its brand has become too intertwined with Elon Musk.

THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.

U.S. markets traded modestly lower before the bell Tuesday and ahead of the first of a two-day Federal Reserve meeting on where to go with interest rates.

Futures for the S&P 500 and Dow Jones industrials both slipped 0.3% in premarket trading, while the technology-heavy Nasdaq fell 0.5%.

As the Fed prepares to meet Tuesday and Wednesday, the central bank and its chair, Jerome Powell, are faced with an economy that is looking somewhat different than it did at its last meeting just two months ago. Hiring was solid. The economy grew at a solid pace in last year’s final quarter. And inflation, while stubborn, had fallen sharply from its peak more than two years ago.

Now, on-and-off again tariff threats from President Donald Trump and sharp cuts to government spending and jobs have tanked consumer and business confidence, which could weigh on the economy and potentially on what is still a healthy job market.

Stocks have been roiled by worries that Trump’s rat -a- tat announcements on tariffs and other policies are creating so much uncertainty that U.S. households and businesses will hold back on spending, which would hurt the economy.

Fed officials will almost certainly keep their key rate unchanged this week. At the conclusion of the meeting Wednesday, they will release their latest quarterly economic projections, which will likely show they expect to cut benchmark interest rates in the U.S. twice this year.

In equities trading, Tesla faltered again, losing 1.7% before the bell. That follows a 4.8% sell-off the day before on news that China’s energy and auto giant BYD announced an ultra fast EV charging system that it says is nearly as quick as a gas fill up.

Crude prices are higher in Middle East tensions and ahead of what could be pivotal talks between Trump and Russian President Vladimir Putin on a ceasefire in Ukraine. Benchmark U.S. crude adding 78 cents to $68.36 a barrel. Brent crude, the international standard, rose 77 cents to $71.84 a barrel.

Amid the uncertainty, gold continues to climb higher. The price for spot market gold is hitting $3,000 an ounce for the first time ever. Considered a safer haven during global economic uncertainty, the precious metal traded around $3,038 early Tuesday.

In Europe at midday, France's CAC 40 rose 0.5%, Germany's DAX added 1.1% and Britain's FTSE 100 rose 0.4%.

In Asia, Japan's benchmark Nikkei 225 gained 1.2% to finish at 37,845.42.

The Bank of Japan was expected to keep its benchmark interest rate unchanged at a monetary policy board meeting due to wrap up Wednesday.

Shares in major Japanese trading companies rose after Warren Buffett’s Berkshire Hathaway reported increases in its ownership of those companies. Itochu Corp. rose 2.5%, Marubeni Corp. added 3.5%, and Mitsubishi Corp. gained 3.6%, while Mitsui & Co. shares were up 3.1%. The investments, although still under 10% in each company, are seen as an expression of confidence in the Japanese economy.

Elsewhere in Asia, Hong Kong’s Hang Seng jumped 2.5% to 24,740.57, led by buying of tech-related stocks. The Shanghai Composite inched up 0.1% to 3,429.76.

Australia's S&P/ASX 200 rose nearly 0.1% to 7,860.40. South Korea's Kospi inched up less than 0.1% to 2,612.34.

Trading on Indonesia stock exchange was suspended temporarily as the benchmark JSX tumbled as much as 6%. But it bounced back a bit, falling 3.8%.

Investors have been selling shares in state-owned banks after the government launched a sovereign wealth fund, called Danantara, that so far has not proven popular. Worries over U.S. President Donald Trumps tariff increases and other risks have also shaken confidence in the economy, said Budi Frensidy, a professor at the University of Indonesia.

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AP writer Niniek Karmini in Jakarta contributed to this report.