US Stocks Mostly Fall As Fed Meets On Interest Rates

By BERNARD CONDON
AP Business Writer

NEW YORK (AP) -- The guessing game over higher interest rates is making for a jerky stock market.

A day after their biggest gain in six weeks, U.S. stock indexes mostly fell on Tuesday as oil continued to slide and investors fretted over when the Federal Reserve will raise a key borrowing rate. Low rates have helped stocks soar over the past six years. The Fed kicked off a two-day meeting on Tuesday to discuss rates, and will release a policy statement on Wednesday.

Losses were small, but spread across industries. Nine of the 10 sectors of the Standard & Poor's 500 index dropped, led by a 1.2 percent fall in raw-material companies.

Randall Warren, chief investment officer of Warren Financial Service, said he's isn't worried about higher rates, but is bracing for more price swings nonetheless.

"The economy is stronger, and can handle it and people will realize that," he said. "But now we're in the fear phase."

The S&P 500 fell 6.99 points, or 0.3 percent, to 2,074.20. The Dow Jones industrial average lost 128.34 points, or 0.7 percent, to 17,849.08. The Dow jumped 228 the day before. 

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US Stocks Mostly Fall As Fed Meets On Interest Rates