U.S. stocks dipped Tuesday ahead of the Fed's expected rate cut, with markets reacting to shifting global rate expectations.

U.S. stocks declined on Tuesday as investors awaited the Federal Reserve's decision on interest rate cuts, with the Dow, S&P 500, and Nasdaq all posting modest losses, the latter being the least affected. Markets were cautious ahead of the Fed's two-day meeting, expecting a minimum 25 basis point cut. The euro, pound, yen, and other major currencies rose against the dollar amid shifting rate expectations. Global markets ended mixed, with Europe seeing sharp declines and many Asia-Pacific and Indian markets posting gains.