The Dow Jones Industrial Average was down 56.88 points, or 0.17 percent, to 33,561.81. The S&P 500 fell 18.95 points, or 0.46 percent, to 4,119.17. The Nasdaq Composite Index fell 77.37 points, or 0.63 percent, to 12,179.55.
Eight of the 11 primary S&P 500 sectors ended in red, with materials and technology leading the laggards by going down 0.93 percent and 0.85 percent, respectively. Meanwhile, industrials and energy led the gainers by rising 0.17 percent and 0.04 percent, respectively.
U.S. stocks are mostly lower ahead of what will be the start of a lengthy debt ceiling negotiations and ahead of an inflation report that should show the disinflation process is struggling, noted Edward Moya, senior market analyst at OANDA, a supplier of online multi-asset trading services.
The meeting between U.S. President Joe Biden and congressional leader on debt ceiling on Tuesday afternoon failed to generate any meaningful breakthrough.
U.S. House Speaker Kevin McCarthy said he saw no "any new movement" in negotiating positions over the debt ceiling in the meeting.
Meanwhile, investors continue to focus on developments of U.S. inflation and the next move by the Fed.
"We haven't said we are done raising rate ... if additional policy firming is appropriate, we'll do that," said John Williams, president of New York Federal Reserve and vice chairman of the Federal Open Market Committee.
Speaking at an event organized by the Economic Club of New York, Williams said he did not see any reason to cut interest rates this year in his baseline forecast.
"The April CPI report is going to remind everyone that inflation is staying sticky. The Fed won't be raising rates on a hot report, but it will justify calls that rates will stay higher for longer," said Moya.
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