NEW YORK (TheStreet) -- U.S. stock index futures were trading lower Tuesday as the markets wait to hear from the Federal Reserve and Chair Janet Yellen on the path of monetary policy.
Dow Jones Industrial Average
U.S. stocks markets had a dull finish on Monday as money from large investors slowed its flow into U.S. equities in the lead-up to the meeting of the policymakers.
"The challenge for the Fed is whether to adjust the language of its meeting statement, and if so, how to do it in a way that does not unnerve investors," said David Joy, chief market strategist at Ameriprise Financial. Joy expects the Fed to reiterate that its future actions are data dependent, and that it intends to remain considerably accommodative.
Bond yields already have started to adjust to the possibility of less accommodative policy, with the yield on the 10-year Treasury note rising by almost 30 basis points in just the past two weeks, to 2.61% from 2.32%.
By the end of this year, the S&P 500 could still be trading around 2014 if Fed rate-hike concerns as well as rising bond yields weigh on the market's valuation multiple, according to Yardeni Research data.