Markets dip ahead of Fed decision

More signs Monday of slowing economic growth in China weighed on companies that produce raw materials, pulling the stock market to a slight loss. Trading was light as investors looked ahead to a much-anticipated Federal Reserve meeting later this week.

Until recently, many in the markets thought the Fed would raise its benchmark interest rate at the end of its two-day meeting on Thursday. Now, opinions are split. Some analysts suggest China’s slower economy and turbulence in financial markets might prompt the Fed to postpone its first rate increase since 2006. But the Fed’s deputy chairman, Stanley Fischer, recently said he saw a “pretty strong case” for raising rates.

Major U.S. indexes opened higher, then quickly changed course. They sank slowly through the rest of the morning and remained lower through the remainder of the day. Miners and other materials companies had some of the biggest losses.

The Standard & Poor’s 500 index lost 8.02 points, or 0.4 percent, to close at 1,953.03.

The Dow Jones industrial average gave up 62.13 points, or 0.4 percent, to 16,370.96, and the Nasdaq composite fell 16.58 points, or 0.3 percent, to 4,805.76.