U.S. stocks ended lower on Tuesday, ahead of the much-awaited interest rate decision from the Federal Reserve.

Markets are fully pricing a rate hike of at least 75 basis points at the end of Fed's policy meeting, with some of the traders also expecting a whopping 100 bps hike. The benchmark S&P 500 index has tumbled around 19% so far this year, settling below the $3,900 level for the third consecutive session.

Shares of Ford Motor Company (NYSE:F) dropped over 12% on Tuesday after the company said it expects Q3 inflation-related supply costs to be $1 billion above what was initially expected.

The Nasdaq 100 fell 0.85% to close at 11,851.54 on Tuesday, while the S&P 500 fell 1.13%. The Dow Jones dipped around 313 points to settle at 30,706.23 in the previous session.

Shares of Amazon.com, Inc. (NASDAQ:AMZN) and Meta Platforms, Inc. (NASDAQ:META) also closed lower on Tuesday.

All the major sectors on the S&P 500 closed on a lower note, with real estate and materials stocks recording the biggest plunge on Tuesday.

The Chicago Board Options Exchange's CBOE Volatility Index (VIX) jumped 7.8% to 27.77 points.

What is CBOE Volatility Index?

The CBOE Volatility Index, popularly known as VIX, is a measure of the equity market's expectation of volatility based on S&P 500 index call and put options.