US equity markets retreated at the open on Thursday, weighed down by caution ahead of a pivotal day for monetary policy and corporate earnings.
The sell-off marks a continuation of the defensive positioning that began on Wednesday, as traders reduce exposure ahead of the Federal Reserve's interest rate decision scheduled for later in the day.
The market pullback reflects heightened sensitivity to potential policy surprises.
Investors are closely monitoring the Fed's latest move, with any deviation from expectations likely to amplify volatility in the session.
The cautious tone has spread across major indices, with the Dow Jones Industrial Average and S&P 500 both trading in negative territory.
Adding to the uncertainty, the day's calendar includes quarterly earnings reports from two of the market's largest constituents: Microsoft and Meta.