Stocks fell on Tuesday in a choppy trading session as investors continued to weigh the Federal Reserve's next monetary policy moves due out later this month. The Dow Jones Industrial Average fell over 170 points, while the S&P 500 Index and Nasdaq Composite slipped 0.4% and 0.7%, respectively.
Here's how the market settled on Tuesday:
S&P 500 Index (NYSE: SPY): -0.41% or -16.07 points to 3,908.19
Dow Jones Industrial Average (NYSE: DIA): -0.55% or -173.14 points to 31,145.30
Nasdaq Composite Index (NASDAQ: QQQ): -0.74% or -85.95 points to 11,544.91
Tuesday's moves follow three straight weeks of losses for the major averages. On Friday, the Labor Department released its latest monthly jobs report for August, with the economy adding 315,000 jobs as the unemployment rate 3.7%.
On Tuesday, the Institute for Supply Management reported its services purchasing managers index (PMI) rose to a better-than-expected level of 56.9 in August from 56.7 in July, marking the second straight month of gains after a three-month decline.
Both these reports come ahead of the Fed's September meeting, where policymakers are expected to raise interest rates again as the central bank continues to fight against rising inflation. Investors fears that better-than-expected economic data may lead the Fed to remain aggressive, which could include another 75 basis point hike.
Elsewhere, oil prices slipped lower after OPEC and its allies issued their first supply cut in more than a year. West Texas Intermediate (NYSE: USO) crude futures declined to $86.77 per barrel, while international benchmark Brent Crude (NYSE: BNO) futures ticked down to $92.65 per barrel.
For stocks, Bed Bath & Beyond (NASDAQ: BBBY) remained in the spotlight on Tuesday after the home-goods retailer announced a strategic turnaround plan that includes laying off staff and closing about 150 stores.
Separately, the company's stock was impacted by the death of Chief Financial Officer Gustavo Arnal by suicide over the weekend. Prior to his death, Arnal was named in a $1.2 billion shareholder lawsuit alleging involvement in a "pump and dump" scheme.
Looking ahead, investors will focus on speeches from Fed presidents and a new interest rate hike decision from the European Central Bank scheduled for later this week.