US stocks drop ahead of key Fed meeting that could reveal interest rate path

• US stocks fell on Monday as investors shift focus to the Federal Reserve's meeting this week.
• Chairman Jerome Powell could speed the tapering of the Fed's monthly bond purchases to combat inflation.
• Additionally, the Fed might finally reveal when it expects to begin raising interest rates from 0%.

US stocks dropped on Monday, opening the week lower after last week's gains, ahead of a key Federal Reserve policy meeting this Tuesday and Wednesday.

Investors will be watching whether Fed Chairman Jerome Powell announces a quickening of the central bank's monthly bond-purchase tapering program, as it seeks to combat an ongoing rise in inflation. The Fed could also set investor expectations as to when it may begin to raise interest rates in 2022.

Billionaire investor Bill Ackman said he believes the government is significantly underreporting the rate of inflation, arguing that rising home rents are not factored into the Bureau of Labor Statistics calculations.

Here's where US indexes stood at the 4:00 p.m. ET close on Monday:

• S&P 500: 4,668.97, down 0.91%
• Dow Jones Industrial Average: 35,650.95, down 0.89%
• Nasdaq Composite: 15,413.28, down 1.39%

Apple came within $0.73 of hitting a $3 trillion market valuation for the first time ever, but the stock reversed lower throughout the day and fell 2% to finish at $175.74. Apple stock needs to hit $182.86 to reach the milestone.

JPMorgan said Apple's upcoming budget 5G iPhone SE will help accelerate sales in 2022 and drive the stock to $210. The bank reiterated Apple as one of its top picks in a Monday note.

Arena Pharmaceuticals soared 97% on Monday after Pfizer agreed to acquire the biotechnology firm for $6.7 billion, or $100 per share. Arena Pharmaceuticals develops CAR-T technology and is developing a drug for ulcerative colitis.

The mayor of Miami is planning to take some of his 401(k) retirement savings in bitcoin as he continues to promote the city as a cryptocurrency haven.

Meme-stock favorites GameStop and AMC Entertainment plunged about 15% as both stocks suffered from deteriorating technical conditions, including an imminent "death cross."

West Texas Intermediate crude oil dropped as much as 0.47% to $71.33 per barrel. Brent crude, oil's international benchmark, fell as much as 0.88% to $74.49 per barrel.

Gold rose as much as 0.17% to $1,787.80 per ounce.