The Dow Jones Industrial Average fell 0.6% in morning action, as the S&P 500 dropped 0.2%. The tech-focused Nasdaq composite lost 0.3% after the opening bell.

Early Tuesday, the 10-year Treasury yield climbed to 4.67%. Further, oil prices rose as West Texas Intermediate futures traded around $82.90 a barrel.

Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) was down 0.3%, as the SPDR S&P 500 ETF (SPY) lost 0.2%.

Tesla stock skidded nearly 3% Tuesday morning after The Information reported that the electric-vehicle giant dismissed two senior executives and plans to lay off hundreds more employees, frustrated by falling sales and the pace of job cuts so far.

On Monday, Tesla stock soared more than 15%, retaking its 50-day moving average for the first time since early January.

Stock Market Today: Fed Meeting

The Federal Reserve's two-day meeting is sure to take the spotlight this week when it begins Tuesday. And the Fed meeting statement and Fed chief Jerome Powell's comments Wednesday afternoon will offer signals on when rate cuts could take place. But that really depends on economic data.

The latest consumer confidence reading is due Tuesday at 10 a.m. ET. The Conference Board's consumer confidence index is expected to tick lower to 104.0 in April vs. March's 104.7 reading.

Key earnings reports Tuesday include Coca-Cola (KO), Lattice Semiconductor (LSCC), MicroStrategy (MSTR), NXP Semiconductor (NXPI) and PayPal (PYPL).

Coca-Cola shares dropped 0.5% in morning trade, while Lattice stock rose 1.2%. MicroStrategy dived nearly 9%, as NXP shares rallied 4%. And PayPal stock climbed 1% after the market open.

Magnificent Seven member Amazon is expected to report after the close. Amazon shares bullishly regained their 50-day line in recent sessions. The stock was up 0.2% in early trading.