Investing.com – U.S. stocks closed lower on Tuesday, after oil prices slid for a seventh straight session and heaped pressure on energy stocks ahead of the Federal Reserve's interest rate decision on Wednesday.
U.S. crude oil prices hit a three-month low, after the Organization of the Petroleum Exporting Countries’ latest monthly report revealed that Saudi Arabian crude oil production rose to 10.011 million barrels a day, up from 9.748 million in January while the report also forecast a rise in production from non-OPEC members in 2017.
In what was quiet day for top-tier economic data releases, upbeat U.S. economic data had a muted effect on equities.
The Labor Department said on Tuesday that its producer price index for final demand increased 0.3 percent last month after rising 0.6 percent in January. Economists had forecast a 0.1 percent rise.
The Dow Jones Industrial Average closed 0.19% lower at 20,842. The S&P 500 shed 0.34% and the Nasdaq Composite lost 0.32% to close at 5,856.
Meanwhile in the bond market, U.S. Treasury paused ahead of the Federal Reserve’s interest rate decision on Wednesday. Market participants widely expect the U.S. central bank to increase interest rates from 0.75 to 1%.
Treasury yields traded slightly below break-even with the U.S. 10-Year trading at around 2.600, down 0.26%, by 16:12 EDT.
The top S&P 500 gainers included Western Union Company (NYSE:WU) up 3.5%, and Motorola Solutions Inc (NYSE:MSI) up 2.1%, while Regency Centers Corporation (NYSE:REG) added 1.8%.
Frontier Communications Corporation (NASDAQ:FTR) down 4.7%, United Continental Holdings Inc (NYSE:UAL) down 4.7% and Citrix Systems Inc (NASDAQ:CTXS) slumped 3.4%, were among the worst S&P 500 performers of the session.