The benchmark S&P 500 was down 1.7% in afternoon trade, while the Dow Jones Industrial Average was down 500 points, or 1.6%. The tech-heavy Nasdaq Composite fell about 1.5 percent. A quarter of all trading days so far this year have fallen 1 percent or more, according to data from Bespoke Investment Group. The only other post-World War II years with a higher frequency of days with such losses were 1974, 2002 and 2008. As Wall Street awaits the outcome of the meeting, the 10-year U.S. Treasury remains well above 3.5%, its highest level since 2011, while the 2-year note moves toward 4%. The policymaking Federal Open Market Committee begins its September meeting today and is expected to push for a third straight 75 basis point increase in the benchmark interest rate by the end of deliberations on Wednesday. After the meeting of officials, investors will tune in for a speech by Fed Chairman Jerome Powell for further indications on the pace and size of future hikes. “A third ‘abnormally large’ hike would be a reversal from the plan President Powell laid out in July to slow the pace of tightening, despite little surprise in the data,” Goldman Sachs economists led by Jan Hatzius wrote in a note. . “We see several reasons for the change in plan: the stock market has threatened to undo some of the tightening of financial conditions that the Fed had planned, the strength of the labor market has reduced fears of too much tightening at this stage, Fed officials now seem want somewhat faster and more consistent progress towards reversing warming and some may have reassessed the short-term neutral rate.’ Bank of America expects the Fed’s chart – each official’s forecast of the central bank’s key short-term interest rate – to show a “subtle slowdown” in the pace of hikes at the November meeting. But analysts suggest Powell is likely to discount that signal and continue to stress that hikes will be data-driven to keep Fed discretionary. The story continues WASHINGTON, DC – SEPTEMBER 19: Renovations continue at the Marriner S. Eccles Federal Reserve Board building on September 19, 2022 in Washington, DC. The Federal Open Market Committee (FOMC) is set to hold its two-day meeting on interest rates starting September 20. (Photo by Kevin Dietsch/Getty Images) “In other words, if the data warranted another rate hike of 75 basis points in November, we do not believe the committee would be constrained from its previous forecast,” BofA analysts led by Michael Gapen said in a note. “We suspect the Fed will rely less on forward guidance and more on data reliance as the policy rate moves further into restrictive territory.” On the corporate front, shares of Ford ( F ) fell more than 12% on Tuesday — the stock’s biggest intraday drama since February — in the afternoon after the company warned of higher costs due to inflation and supply chain challenges, making the latest company to describe struggling with macroeconomic challenges. The legacy Detroit-based automaker now expects supply costs to total $1 billion more during the quarter than previously estimated, and supply shortages will affect about 40,000 to 45,000 vehicles, shifting some revenue into the fourth quarter. — Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc Click here for the latest Yahoo Finance platform stock trends Click here for the latest stock market news and in-depth analysis, including the events that move stocks Read the latest financial and business news from Yahoo Finance Download the Yahoo Finance app for Apple or Android Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn and YouTube