05:02 PM EST, 11/04/2024 (MT Newswires) -- US benchmark equity indexes closed lower Monday ahead of the presidential election and the Federal Reserve's monetary policy decision due later in the week.

The Dow Jones Industrial Average fell 0.6% to 41,794.6, while the S&P 500 and the Nasdaq Composite dropped 0.3% each to 5,712.7 and 18,180, respectively. Utilities saw the biggest drop among sectors, while energy paced the gainers.

The US presidential election is scheduled for Tuesday, with Democratic Party nominee and Vice President Kamala Harris competing with Republican Party nominee and former President Donald Trump.

The central bank's Federal Open Market Committee is slated to begin its two-day meeting Wednesday. Markets are widely expecting policymakers to lower their benchmark lending rate by 25 basis points Thursday, according to the CME FedWatch tool.

"Given that the meeting will come on the heels of the election, there will likely be questions about its implications," Macquarie said in a Monday note to clients. "Should Trump emerge as the victor, these would likely focus on the threatened tariffs, fiscal policy, and Fed independence."

The US 10-year yield decreased 7.6 basis points to 4.29%, while the two-year rate lost 3.5 basis points to 4.17%.

In company news, Constellation Energy ( CEG ) shares tumbled nearly 13%, the worst performer on the S&P 500 and the Nasdaq, as Mizuho adjusted its price target on the stock to $235 from $264 while maintaining its neutral rating. Constellation Energy ( CEG ) reported its third-quarter financial results and updated its full-year earnings outlook Monday.

Intel ( INTC ) saw the steepest decline on the Dow and the second-steepest on the Nasdaq, down 2.9%. Late Friday, S&P Global ( SPGI ) division S&P Dow Jones Indices said Nvidia ( NVDA ) will replace Intel ( INTC ) in the Dow, effective Nov. 8. Nvidia ( NVDA ) shares closed 0.5% higher Monday.

Salesforce ( CRM ) shares rose 1.1%, the best performer on the Dow, as Evercore ISI adjusted its price target on the stock to $400 from $300.

Freshpet ( FRPT ) lifted its full-year sales and core profit outlooks as the pet food company swung to higher-than-expected third-quarter earnings, buoyed by double-digit volume growth. The company's shares jumped 13%.

West Texas Intermediate crude oil increased 3.2% to $71.68 a barrel. Prices rose following a decision by the Organization of the Petroleum Exporting Countries and its allies to delay by a planned hike in oil production by a month, D.A. Davidson said in a note to clients.

Gold fell 0.2% to $2,745.20 per troy ounce, while silver lost 0.3% to $32.59 per ounce.