US stocks closed lower on Tuesday, as investors remained cautious ahead of the Federal Reserve's final interest rate decision of the year.

The S&P 500 fell 0.4 percent as it saw broad declines in all sectors except consumer sentiment. The biggest decliners were financials, industrials and utilities.

The tech-heavy Nasdaq Composite slipped 0.3 percent. Four of the so-called great seven big technology stocks fell, with Nvidia shares down 1.2 percent. Tesla, on the other hand, gained 3.6 percent, a fresh record high.

The Fed is expected to cut interest rates by a quarter point on Wednesday.