(Updates with latest market prices and developments.)
US benchmark equity indexes were mostly higher intraday as traders tracked fresh earnings reports, while the Federal Reserve kicked off its two-day monetary policy meeting.
The Dow Jones Industrial Average was up 1.2% at 52,850.8 after midday Tuesday, while the S&P 500 rose 0.4% to 7,438.8. The Nasdaq Composite was little changed at 24,937.7. Most sectors were in the green, led by health care, while energy saw the sharpest drop.
Sherwin-Williams (SHW) jumped 8.7%, the best performer on the Dow and the S&P 500, after the paint and coating manufacturer reported stronger-than-expected second-quarter results and raised its full-year outlook.
Boeing (BA) and Coca-Cola (KO) were also among the biggest gainers on the Dow.
The planemaker's second-quarter loss exceeded Wall Street's estimates, while its free cash flow turned positive. The beverage giant raised its full-year earnings growth outlook as it reported stronger-than-expected second-quarter results.
Chip stocks were among notable laggards intraday, with Sandisk (SNDK) down 14%, the second-worst performer on the S&P 500. Micron Technology (MU) shed 8.8%, Advanced Micro Devices (AMD) declined 7.2% and Intel (INTC) was off by 4.9%.
The Federal Open Market Committee's meeting began Tuesday, with a decision due Wednesday. The probability of the central bank leaving its benchmark lending rate unchanged was at about 70%, with the remaining odds in favor of a quarter-percentage-point increase, according to the CME FedWatch tool.
With markets expecting no change to the Fed's monetary policy settings, the focus will be on the path forward for interest rates.
Last month's bout of disinflation "only further complicates expectations for future inflation and the outlook for rates," Stifel said in a report Tuesday.
"The doves are optimistic that inflation could cool further into year-end as the impact of tariffs rolls off and energy prices stabilize," the brokerage said. "The recent rise in tensions overseas, however, coupled with (artificial intelligence)-sector price pressures suggest further upside inflationary risks remain, shifting the pendulum back into the hawk's camp."
West Texas Intermediate crude oil declined 4.8% to $78.64 a barrel intraday, while Brent dropped 5.4% to $83.60.
"The oil market continues to sell off heavily, with the US and Iran continuing to hold off on further strikes," ING said.
President Donald Trump said Monday that there was "a good chance" of a deal with Iran as talks continued, Reuters reported.
Treasury yields were lower intraday, with the two-year rate down 5.2 basis points at 4.27% and the 10-year rate falling 3.9 basis points to 4.6%.
In economic news, US consumer confidence unexpectedly fell in July, with "little improvement" in business conditions expected over the next six months, a survey by the Conference Board showed.
Visa (V), NXP Semiconductors (NXPI) and automaker Ford (F), among others, are expected to release their earnings after market close.
Gold fell 1% to $4,036.10 per troy ounce, while silver lost 2% to $57.55 per ounce.
