The US markets closed lower on Monday, as investors turned cautious ahead of a busy week of earnings and central bank meetings. The Federal Reserve kicks off its monetary policy meeting on Tuesday and will announce its decision on Wednesday. The central bank is widely expected to hold interest rates steady and stop short of signaling a possible rate increase in September because of continued uncertainty about the economic outlook. The Fed hiked rates last December but has refrained from moving ever since, unsure about the financial market turmoil at the beginning of the year, the lackluster growth in the first quarter. This caution was compounded by the decision late last month by UK voters to leave the European Union. Fed fund futures, used by investors to bet on the timing of Fed rate hikes, were pricing in only a 19.8% chance of a rate hike in September, according to the CME Group's FedWatch tool. The odds rise to 40% at the December meeting. The Bank of Japan's rate decision is due on Friday local time and will be closely watched for any hints of more easing in the face of a stronger yen post Brexit and a slowdown in the economy. In total, 15 central banks are scheduled to meet this week.
The Dow Jones Industrial Average was down by 77.79 points or 0.42 percent to 18,493.06, Nasdaq lost 2.53 points or 0.05 percent to 5,097.63 while, S&P 500 dropped 6.55 points or 0.30 percent to 2,168.48.
The Indian ADRs closed mixed; Dr. Reddy's Lab was down 1.24%, HDFC Bank was down 0.45% and Tata Motors was down 0.26%. On the other hand, Infosys was up 0.12% and Wipro was up by 0.08%.