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STORY: U.S. stocks ended lower on Tuesday as investors weighed souring consumer confidence and other economic data on the eve of a key Federal Reserve policy meeting.

The Dow dropped one-and-a-half percent, the S&P shed nearly 1.6% and the Nasdaq plunged 2%.

Data showed that U.S. labor costs rose more than expected last quarter, indicating an uptick in wage pressures. A survey also found that consumer confidence in April dropped to its lowest level in more than 1-1/2 years.

Liz Miller is founder and president of Summit Place Financial Advisors.

“We've had these one, two hits today from the economic news. The consumer confidence that came out at 10am clicked things lower. We also got the employment cost index that was up quarter over quarter. And while the Fed met today, it's really a two-day meeting and we are in the silent mode. So I think what we're seeing in the market is really a lack of news and a lack of direction.”

Investors are widely expecting the central bank to leave interest rates unchanged Wednesday at the conclusion of its meeting.

In a busy day for corporate earnings, shares of drugmaker Eli Lilly gained nearly 6% after the company raised its full-year profit forecast thanks to strong demand for its weight-loss drugs.

Shares of GE HealthCare plunged more than 14% after its first-quarter revenue missed analyst estimates.

And 3M shares gained more than 4% after raising its full-year adjusted profit forecast.