AI Stocks Hold Steady as Wall Street Drifts Lower Ahead of Federal Reserve Decision

The AI stock market is stabilizing after a global decline on Monday, as Wall Street faces downward pressure ahead of the Federal Reserve's interest rate decision.

The S&P 500 fell 0.2%, while the Dow Jones Industrial Average dropped 289 points, or 0.6%, by 9:35 a.m. Eastern time. The Nasdaq composite was down 0.3%.

The Federal Reserve is widely expected to hike interest rates for the first time in three years on Wednesday to combat inflation above 3%. This move could remove fuel for high inflation, but would also inflict short-term pain by making borrowing more expensive for U.S. households and businesses.