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U.S. stocks appeared set for a choppy session Tuesday, following the market's worst day since the 2008 financial crisis, as investors awaited the Federal Reserve's latest statement on monetary policy.
U.S. stocks have fallen 15% during the past two weeks, and Monday's beating was the most brutal thus far. Stocks posted their worst losses since the 2008 financial crisis -- amounting to a paper loss of about $1 trillion, in the aftermath of S&P's downgrade of the U.S. credit rating.
All three major indexes sank between 5% and 7%, pushing the Dow below 11,000 for the first time since last November. The sell-off was worse than the 512-point drop stocks experienced only three trading sessions before.
Bank stocks were among the hardest hit during Monday's slide -- with Bank of America shares tumbling 20%, after AIG (AIG, Fortune 500) said it is suing the bank for billions of dollars over mortgage security fraud.
But Bank of America's (BAC, Fortune 500) stock was poised to recoup some of those losses, with shares up more than 6% in premarket trading Tuesday.
All eyes will be on the Federal Reserve when it releases its monetary policy statement at 1815 GMT on Tuesday. Investors will likely pour over the central bank's announcement for hints that the Fed will take steps to stabilize markets, and revitalize the slowing economic recovery to avoid a double-dip recession.
Companies: After the closing bell, Dow component Walt Disney (DIS, Fortune 500) will head to the earnings stage. The media giant is expected to report a profit of 73 cents a share.
Oil for September delivery rose 80 cents to $82.11 a barrel.
Gold futures for December delivery gained $37 to $1,750.20 an ounce. Earlier, gold prices hit a record intraday high of $1,782.50 an ounce.
Bonds: The price on the benchmark 10-year U.S. Treasury fell, pushing the yield up to 2.39% from 2.34% late Monday.
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