US stocks give up an early rally, ending winning streak

FILE- In this March 13, 2019, file photo Gregory Rowe works on the floor of the New York Stock Exchange. The U.S. stock market opens at 9:30 a.m. EDT on Tuesday, March 19. (AP Photo/Richard Drew, File)
FILE- In this March 13, 2019, file photo Gregory Rowe works on the floor of the New York Stock Exchange. The U.S. stock market opens at 9:30 a.m. EDT on Tuesday, March 19. (AP Photo/Richard Drew, File)

U.S. stock indexes closed mostly lower Tuesday after a late-afternoon splash of selling erased early gains, ending a weeklong rally.

Banks accounted for much of the decline, along with utilities and industrial companies. Those losses offset gains in health care, technology and consumer products stocks.

The benchmark S&P 500 ended barely lower, its second loss over the past seven trading days. It’s still up 13 percent so far in 2019.

Investors were looking ahead to what the Federal Reserve will say today following a two-day meeting of policymakers. The central bank has signaled that it will be “patient” in raising interest rates.

Investors seem reassured the Fed will continue to hold off on raising rates, and that’s given them more confidence to push the market higher this year.

“Typically, markets tend to be flat in front of the Fed, usually we’re in a wait-and-see mode,” said Kate Warne, investment strategist at Edward Jones.

The S&P 500 index slipped 0.37 points, or 0.01 percent, to 2,832.57. The Dow Jones Industrial Average dropped 26.72 points, or 0.1 percent, to 25,887.38.

The Nasdaq composite gained 9.47 points, or 0.1 percent, to 7,723.95. The Russell 2000 index of smaller-company stocks gave up 8.95 points, or 0.6 percent, to 1,554.99.

More stocks fell than rose on the New York Stock Exchange. Major indexes in Europe finished higher.

The broader market broke out of a short slump last week and has been gaining since then. It marks a turnaround from a terrifying drop in December, and now every major U.S. index is up more than 10 percent for the year.

What the Fed does next will surely have an impact on the market’s trajectory.

The central bank is expected to leave its key short-term interest rate unchanged Wednesday and to stress its new watchword — “patient”— in conveying its intention to leave rates alone for the foreseeable future.