U.S. stocks fall ahead of Fed meeting

U.S. stocks reversed early gains to end slightly lower Monday, as Wall Street awaited the Federal Reserve's policy meeting.

The Dow Jones Industrial Average decreased 3.63 points, or 0.02 percent, to 18,120.17. The S&P 500 edged down 0.04 point, or less than 0.01 percent, to 2,139.12. The Nasdaq Composite Index dipped 9.54 points, or 0.18 percent, to 5,235.03.

Investors kept a close eye on the Fed's two-day policy meeting, scheduled to begin Tuesday, for more clues on the timing of a next rate hike.

Financial markets have been choppy last week on contrasting remarks on rate hikes by Fed officials.

"The Fed is expected to leave rates unchanged this week, but investors are now looking for a hike in December. Fed officials have called a hike before the end of the year 'likely,' but they said the same thing about a hike before the end of the summer in June and July," said Chris Low, chief economist at FTN Financial, in a note.

Meanwhile, oil prices were also in focus, which traded about 2 percent higher around midday Monday after Venezuela said the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC producers were close to reaching an output deal.

On the economic front, U.S. builder confidence in the market for newly built, single-family homes in September jumped 6 points to 65 from a downwardly revised August reading of 59 on the National Association of Home Builders/Wells Fargo Housing Market Index released Monday.

Overseas stock markets increased broadly Monday. In Europe, German benchmark DAX index at Frankfurt Stock Exchange climbed 0.95 percent, while British benchmark FTSE 100 Index jumped 1.54 percent.

In Asia, Chinese stocks closed higher Monday after a long weekend, with the benchmark Shanghai Composite Index going up 0.77 percent to close at 3,026.05 points. Enditem