Stock Market Today: Stocks Sell Off Ahead of Fed Decision

Stocks sold off sharply Tuesday as anxiety set in ahead of Wednesday's policy statement from the Federal Reserve.

closeup of stock chart with red and green bars indicating selloff
(Image credit: Getty Images)

Stocks opened in negative territory Tuesday, with losses accelerating into the close. Investors were already skittish ahead of tomorrow's Fed decision and this morning's disappointing inflation data did little to calm nerves.  

Ahead of the opening bell, the Bureau of Labor Statistics said the Employment Cost Index (ECI), which measures the cost of labor to businesses and governments, was up 1.2% quarter-to-quarter in Q1 – higher than the 0.9% increase in Q4 and the 1% gain economists were expecting. Year-over-year, the ECI rose 4.2%.

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Karee Venema
Senior Investing Editor,

With over a decade of experience writing about the stock market, Karee Venema is the senior investing editor at She joined the publication in April 2021 after 10 years of working as an investing writer and columnist at Schaeffer's Investment Research. In her previous role, Karee focused primarily on options trading, as well as technical, fundamental and sentiment analysis.