Market Outlook

Greece weighs while traders await Fed

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Fresh data on housing - one of the brighter spots in the economy - is expected Tuesday, as the Federal Reserve starts a two-day meeting where its first interest rate hike in nine years could be on the table.

Markets Tuesday were more immediately focused on concerns that Greece could default on its debt. U.S. stock futures were lower, and equities markets in Europe fell as rates rose on peripheral sovereign bonds. Treasury yields were lower, along with German bund yields.

While the Fed is not expected to move on interest rates yet, it has cleared the path for a rate hike at its future meetings, and economists now expect it to move away from its zero interest rate policy in September. The Fed meeting is "live," or one where the Fed could take action. The Fed is expected to adjust its economic and interest rate forecasts and possibly tweak its statement, while continuing to emphasize that rate hikes are dependent on economic data.

Some Fed watchers say the Fed's path could be derailed if financial conditions deteriorate due to Greece, or some other geopolitical event. Greece's troubled debt discussions weighed on markets Monday, and the S&P 500 declined 9 to 2084. Treasury yields were lower, with the 10-year at 2.35 percent in late trading.

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