Wall Street stocks fell sharply on Tuesday following disappointing economic data as US Treasury yields pushed higher ahead of a Federal Reserve decision.

US consumer confidence fell to its lowest level since July 2022, missing expectations amid rising anxiety over the jobs market and future financial conditions.

Analysts also cited an uptick in US Treasury yields following data showing a jump in US employee compensation costs in the first quarter. The rise came as the Fed kicked off a two-day monetary policy meeting.

The Dow Jones Industrial Average fell 1.5 percent to 37,815.

The broad-based S&P 500 dropped 1.6 percent to 5,035, while the tech-rich Nasdaq Composite Index slumped 2.0 percent to 15,657. (AFP)