U.S. stocks saw a decline on Tuesday as the Federal Reserve began its two-day policy meeting. There are expectations of a 0.25% interest rate cut on Wednesday.

The Dow Jones Industrial Average fell by about 0.7%, marking its eighth consecutive day of losses. The S&P 500 and Nasdaq Composite also experienced decreases of around 0.5%. The tech-heavy index reached a record high on Monday.

Investors are closely watching the Fed's discussions for insights into future rate adjustments due to concerns about inflation. In economic data, November retail sales increased by 0.7%, surpassing the expected 0.6% increase, indicating strong holiday spending. Nvidia's shares dropped over 2% in late morning trading, continuing a downward trend of more than 10% since its record close in November. The market is reacting to these developments, with attention focused on the implications for consumer health and the broader economy.