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Wall Street dipped on Tuesday, pulled lower by energy stocks and threatening to put an end to a recentrally, while investors awaited the result of the Federal Reserve's two-day policy meeting.
The Nasdaq turned negative in afternoon trading after earlier touching a two-week high.
The S&P 500 and Dow Jones Industrial Average closed atrecord highs in the prior session as optimism about a $1.9trillion fiscal stimulus package and ongoing vaccination drives bolstered views that the economy was on a path to recovery.
However, stimulus and improving economic data have recently stoked inflation worries, pushing up yields and upending equity markets in February.
Wall Street's fear gauge hit a five-week low at 19.68points as yields on the benchmark U.S. 10-year Treasury slipped for the second straight session to 1.59%from a 13-month high hit last week.
Fears about an overheating economy and a jump-forward ininterest rate expectations have increased scrutiny on the Fedmeeting, where policy makers are likely to raise economic forecasts and repeat their pledge to remain accommodative for the foreseeable future.
Investors have slightly increased their cash allocation,deeming that inflation and 'taper tantrums' could topple the record rally in financial markets, BofA's March fund manager survey showed on Tuesday.
Data showed retail sales dropped more than expected inFebruary due to bitterly cold weather across the country.Another report indicated winter storms in Texas led to a plunge in U.S. factory output last month.
The Dow Jones Industrial Average was down 0.40% at 32,825.95 points, while the S&P 500 lost 0.16% to 3,962.71.
The Nasdaq Composite dropped 0.09% to 13,471.57.
Energy stocks slumped 2.4% after a drop in oilprices while financials retreated about 1%. Technologyand communication services jumped about 0.5%and 0.7%, respectively.
Declining issues outnumbered advancing ones on the NYSE by a1.87-to-1 ratio; on Nasdaq, a 2.65-to-1 ratio favored decliners.
The S&P 500 posted 72 new 52-week highs and no new lows; theNasdaq Composite recorded 214 new highs and 13 new lows
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