Stocks fall on disappointing earnings and inflation data before Fed decision: Live updates

Stocks declined on Tuesday as higher-than-expected wage data fueled inflation worries ahead of the Federal Reserve's upcoming rate decision. The S&P 500, Nasdaq Composite, and Dow Jones all saw decreases, with McDonald's shares dropping after underwhelming earnings results. Additionally, the employment cost index rose more than anticipated, suggesting persistent inflationary pressures.

Investor sentiment was further dampened by a drop in consumer confidence to its lowest since mid-2022, driven by concerns over inflation and employment. Amidst a busy week of corporate earnings, markets are also bracing for the Federal Reserve's policy meeting, with expectations leaning towards a more hawkish stance from Fed Chair Jerome Powell in light of recent inflation reports.