Shares of metals and mining companies plunged after gold prices fell ahead of Fed meeting. Gold, which has gained 16 percent this year, has fallen about 4.5 percent since hitting a $1,287.80 per ounce high on Friday.
Gold for April delivery were currently down $14.70, or 1.18 percent, at $1,230.40 an ounce.
On the economic front, the Fed is widely expected to keep rates steady this month. While several analysts are of the view that a rate hike is unlikely this week, the Fed may hint that if the economy continues to improve, it may increase rates despite overseas weakness.
Read more: FOMC Preview: Is A Rate Hike On The Horizon?
Among the majors, Freeport-McMoRan Inc FCX plunged 8 percent, Teck Resources Ltd (USA) TCK slipped 7 percent and Yamana Gold Inc. (USA) AUY dropped 3 percent.
Meanwhile, BHP Billiton Limited (ADR) BHP and Rio Tinto plc (ADR) RIO were down 7.4 percent and 5 percent, respectively, following a downgrade. Macquarie downgraded BHP to Underperform, while Morgan Stanley cut RIO to Equal-weight.
In addition, SPDR S&P 500 ETF Trust SPY fell 0.37 percent and SPDR Gold Trust (ETF) GLD declined 0.12 percent.
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