Stocks end mostly lower as Fed meeting begins

Stocks ended mostly lower Tuesday as the Federal Reserve kicked off its two-day meeting on interest rate policy and investors wait for clues on when the central bank may begin raising rates.

The Dow Jones industrial average flopped 128 points, a 0.7% decline. The S&P 599 shed 0.3%, while the Nasdaq gained 0.2%.

Despite the declines, both the Dow and S&P 500 stayed positive for the 2015, after nosing into the black Monday. The two indexes have crisscrossed the break-even mark for the year over the past several weeks.

In a statement following the meeting that concludes Wednesday, the Fed is likely to drop a promise to be patient as it weighs interest rate hikes, clearing a path for an increase as early as June based on recent Fed guidance.

The Fed's benchmark rate has been near zero since the 2008 financial crisis, which has helped fuel the six-year bull market.

Oil fell for a sixth straight day and was trading at six-year lows as U.S. benchmark crude dropped 1.6% to $43.18 a barrel.

Weak housing data also weighed on the market as the government reported that housing starts plunged 17% in February as harsh winter weather hampered construction of new homes.

European shares were mixed Tuesday as Britain's FTSE 100 index gained 0.5% and Germany's DAX index tumbled 1.5%. France's CAC 40 was down 0.6%.

In Asia, Japan's Nikkei 225 index gained 1% and Hong Kong's Hang Seng index dropped 0.2%. The Shanghai Composite rose 1.6%, amid hopes the Chinese government will announce new economic stimulus.

Stocks ended sharply higher Monday as the Dow and S&P 500 sprang back into positive territory for the year.

WITH A BULLET: Fed meets, markets get the vapors

GREENBACK: Surging dollar complicates Fed rate-hike plans

Contributing: Paul Davidson