US open: Dow drops just under 30 points, as Apple opens at highest-ever level

US stocks slid early on Tuesday, as investors remained jittery ahead of the Federal Reserve’s two-day meeting.

Just after 15:00 BST, the Dow Jones Industrial Average was down 29 points, while the S&P 500 and the Nasdaq fell by two and nine points respectively.

The Federal Reserve Open Market Committee begins on Tuesday and investors will closely monitor the interest-rate statement, which is released at 19:00 BST on Wednesday.

“September is looking like the earliest date for an interest rate raise,” said Connor Campbell, financial analyst at Spreadex.

“However, the consistently soft nature of the USA’s recent data could see the return of a more ‘patient’ Fed, despite the door being opened for a 2015 rate rise.”

US consumer fell unexpectedly in April, as a slowdown in hiring and lower expectations on economic growth weighed on sentiment.

On Tuesday, the Conference Board said the index dropped from a revised 101.4 to 95.2 this month, reaching its lowest level since December and falling short of analysts’ expectations of a 102.5 reading.

Meanwhile, the US Case-Shiller index, which monitors house prices in 20 different cities, advanced 0.5% in February

In corporate news, Apple fell 1.18% after changing hands at their highest-ever level, following strong first quarter results late on Monday.

The iPhone-maker reported earnings of $2.33 per share, beating estimates by 17 cents, while revenues for the period jumped 24% year-on-year to $58bn against consensus of a $56.1bn.

Following the results, analysts at Cantor Fitzgerald raised their target price on the stock from $180 to $195, while economists at Morgan Stanley lifted their outlook for 2015.

"We see a broadening portfolio of services and the Apple Watch as drivers of are-rating more in-line with technology platform peers," they said in a note, describing the stock as "Morgan Stanley Best Idea."

Home-appliances maker Whirlpool tumbled 7.75% after the company slashed its full-year earnings guidance, while automotive giant Ford Motor edged forward 0.06% despite reporting a drop in first quarter profit.

Bio-pharmaceutical group Pfizer gained 0.61% after announcing early on Tuesday that revenue had topped estimates, but lowered its outlook because of the impact of the strengthening dollar.

The earnings season continues on Tuesday with Twitter, GoPro and Kraft Foods set to publish results after the close.

The dollar declined 0.16% against the yen and fell 0.63% and 0.75% against the pound and the euro respectively, while gold futures slid 0.03% to $1,202.80.

Oil prices fell slightly, with West Texas Intermediate losing 0.39% to $56.77 a barrel, while Brent lost 0.25% to $64.67 a barrel.