S&P 500 dips as investors shift from chip stocks; bets on rebound at Wednesday open amid Fed meeting.

The S&P 500 fell 0.57% to 7,511.35 on Tuesday as investors rotated out of chip stocks into cyclical sectors. Traders on Polymarket predict a 78% chance the index will open higher on Wednesday, ahead of the Federal Open Market Committee meeting under new Fed Chair Kevin Warsh. Markets expect interest rates to remain steady, but will watch for clues on future monetary policy. Positive sentiment is also supported by easing Middle East tensions and optimism about lower energy prices and economic growth. Key data on retail and home sales, plus CarMax earnings, are awaited Wednesday.