Stock market today: Indexes drop as hot labor data adds pressure ahead of Fed meeting

• US stocks slid Tuesday after a hotter-than-expected employee cost index.
• The quarterly measure saw wage and labor costs accelerate, adding pressure on the Fed.

US equity markets slipped Tuesday as hot labor data stoked fresh bets the Federal Reserve would remain hawkish on monetary policy.

The Employee Cost Index, a quarterly measure of wages and benefits, jumped 1.2%, suppressing estimates of a 1% acceleration. It's also well past the 0.9% increase seen in the fourth quarter, the Bureau of Labor Statistics reported Tuesday.

The index is among a number of inflationary reports to have come out this year, pouring cold water on previous hopes that the Fed would lower interest rates soon.

Tuesday marks the start of the central bank's policy meeting, and investors are looking for insight about future rate cuts during the press conference that will follow on Wednesday.

Meanwhile, earnings continue to pour in, with Amazon and Apple among the big names set to report this week. Among Tuesday's movers, missed estimates took a toll on McDonald's shares.

Here's where US indexes stood at the 9:30 a.m. opening bell on Tuesday:

• S&P 500: 5,101.43, down 0.28%
• Dow Jones Industrial Average: 38,216.67, down 38,216.67% (-181.37 points)
• Nasdaq Composite: 15,918.18, down 0.4%

Here's what else is going on today:

• A new ETF promises 100% downside protection, but with a limit on upside potential
• Trump advisors are discussing penalties for countries that pull away from the dollar, Bloomberg reported.
• One bank that called for deep interest rate cuts this year now sees a possible hike on the horizon.

In commodities, bonds, and crypto:

• West Texas Intermediate crude oil climbed 0.69% to $83.04 a barrel. Brent crude, the international benchmark, fell 0.93% to $87.56 a barrel.
• Gold slid 1.24% to $2,305.82 per ounce.
• The 10-year Treasury yield gained six basis points to 4.674%.
• Bitcoin dropped by 1% to $62,955.