US stocks fell with the S&P 500 and Nasdaq Composite retreating from highs after disappointing earnings reports as investors braced for a Federal Reserve (Fed) policy statement.
Most of the Dow Jones index components reported their earnings, with UnitedHealth, Boeing and Merck closing lower after announcing quarterly financial reports.
Health insurer UnitedHealth fell 7.5% after reporting a weaker profit forecast, while Boeing fell 4.4% despite posting a smaller second-quarter loss.
Merck fell 1.7% after reporting a quarterly report and delaying shipments of the Gardasil vaccine to China until the end of 2025 due to weak demand.
The Dow Jones Industrial Average fell 0.46% to 204.57 points, the S&P 500 fell 0.30% to 18.91 points, while the technology-focused Nasdaq slid 0.38% to 80.29 points.
On the economic front, the US consumer confidence survey in July rose more than expected to 97.2, indicating increasingly positive sentiment among consumers.
However, the US Job Openings and Hiring (JOLTS) data for June recorded a decline in the number of vacancies and hiring, reflecting signs of a slowdown in the labor market.
In other developments, the Federal Reserve is expected to keep interest rates unchanged in its announcement to be made early Thursday morning.
More important attention will be paid to Chairman Jerome Powell's statement, which will be closely watched for clues on possible policy easing in the future.
Meanwhile, two days of US-China talks in Stockholm ended yesterday with President Donald Trump saying he was informed by Treasury Secretary Scott Bessent that the meeting with Chinese officials went well.
Volume on US exchanges recorded $18.01 billion compared to an average of $17.89 billion over the full 20 trading days.
