U.S. stocks trade lower ahead of Fed meeting

U.S. stocks were lower around midday Monday as investors became cautious ahead of the Federal Reserve's policy meeting later this week.

By noon, the Dow Jones Industrial Average fell 65.09 points, or 0.36 percent, to 17,800.25. The S&P 500 lost 10.48 points, or 0.50 percent, to 2,085.59. The Nasdaq Composite Index decreased 38.05 points, or 0.78 percent, to 4,856.50.

Investors are keeping a close eye on the U.S. central bank's two-day policy meeting, which will start on Tuesday, for more clues on the timing of a rate hike.

However, the possibility of a June rate hike becomes lower following much-worse-than-expected May nonfarm payroll numbers, which cast doubt over the health of the U.S. economy.

Analysts thought that Fed Chair Janet Yellen removed most of the rate hike drama from the Fed's policy meeting when she said in a speech last week that the recent disappointing job gains were "concerning."

Yellen avoided giving the timeline for further rate hikes by saying that she expected the federal funds rate to probably need to rise gradually over time to ensure price stability and maximum sustainable employment in the longer run.

Oil prices were also in focus, which traded mildly lower around midday Monday, pulled down by rising economic concerns about global growth.

On Friday, U.S. stocks ended sharply lower as further declines in oil prices continued to weigh on Wall Street. Endit