Mid-Day Recap: Stocks Fall Again as FOMC Meeting Begins

The S&P 500 has dipped below the 1,000 level today as all three major indexes have shed more than 1% in the first three hours of trading. A better than expected productivity report did little to boost spirits before the open, and markets extended their losses 30 minutes into the session when it was reported that wholesale inventories were reduced quite a bit more than had been forecasted. Aside from reacting to data, markets are anxious as the Federal Reserve's monetary policy board begins its two-day meeting today.

At 12:30, the S&P 500 is trading 1.21% lower at 995, while the Dow has shed 0.95% to 9,248, and the Nasdaq is down 1.19% to 1,968. All three indexes saw moderate losses yesterday as well, but those two days of losses follow a four-week rally.

The first piece of news this morning was the 8:30 data explaining how second quarter earnings performed so well. The Labor Department said business productivity rose by 6.4% between April and June â€