S&P 500 turns lower as Russia-Ukraine ceasefire talks pause ahead of Fed meeting

• The S&P 500 turned lower Monday in another topsy-turvy session for US stocks.
• Oil prices briefly fell below $100 a barrel, pressuring the S&P 500 energy sector.

US stocks finished mostly down in another volatile session Monday, with sliding oil prices pressuring the energy sector while investors prepared to hear what the Federal Reserve will do this week about fighting inflation.

The S&P 500 and the Nasdaq Composite turned lower after gaining ground earlier in the session. The Dow Jones Industrial Average gave up a 450-point gain, reversed into negative territory, then closed essentially flat.

The energy sector in the S&P 500 put in the worst performance as oil prices were knocked lower. Oil losses were attributed to factors ranging from resumed – and now paused – ceasefire talks between Russia and Ukraine and reports that China is locking down two big cities because of a surge in coronavirus infections. US crude futures briefly fell below $100 a barrel.

Here's where US indexes stood at 4:00 p.m. on Monday:

• S&P 500: 4,173.10, down 0.74%
• Dow Jones Industrial Average: 32,945.24, flat (up 1.05 point)
• Nasdaq Composite: 12,581.22, down 2.04%

"The news in China could complicate the picture for the Federal Reserve," said Shawn Cruz, senior market strategist at Fidelity, in a note Monday. The Fed will begin its two-day policy meeting on Tuesday. "Because the Fed can't do much to control or help with supply chains, the market is still expecting the Fed to raise rates just a quarter of a point" in Wednesday's decision.

"The Fed has a tough job in trying to address inflation that has been rising at a 40-year record pace and not crushing an economy struggling with numerous issues, like the supply chain and war in Ukraine," he added.

Goldman Sachs cut its S&P 500 price target as commodity prices take a bite out of earnings and as the investment bank sees a 40% chance of recession.

The central bank "put" is missing from stocks as policymakers focus on fighting inflation, said Barclays.

Russia may be cut off from the world's lender of last resort as bonds head toward default.

Oil prices dropped. West Texas Intermediate crude lost 7.1% to $101.56 per barrel. Brent crude, the international benchmark, declined 1.6% to $105.16.

Gold prices gave up 1.6% to $1,953.50 per ounce. The 10-year yield shot up 14 basis points to 2.14%.

Bitcoin moved higher by 2.4% to $38,744.86.