NEW YORK - Stocks opened lower Wednesday as investors grew cautious a day after Wall Street rallied on hopes for an interest rate cut.
Investors are waiting for economic data that could help indicate whether the Federal Reserve will reduce its benchmark federal funds rate when it meets in two weeks. The Fed's Beige Book, which describes economic conditions in regions around the country, is due Wednesday afternoon.
The Fed has held rates steady for more than a year in a bid to reduce inflation that remains above its comfort level. The Beige Book could help indicate whether the economy has been slowed by a stumbling housing market, rising mortgage defaults and tightening access to credit. Stock markets have been volatile for more than a month over such concerns.
Wall Street will also be looking to data on how the housing market is faring. In the first hour of trading Wednesday, the National Association of Realtors' report on pending sales of existing homes is slated to arrive.
In the first minutes of trading, the Dow Jones industrial average fell 75.76, or 0.56 percent, to 13,373.10.
Broader stock indicators fell. The Standard & Poor's 500 index fell 7.84, or 0.53 percent, to 1,481.58 and the Nasdaq composite index fell 13.50, or 0.51 percent, to 2,612.74.
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