US stocks slipped from record highs as investors pondered the impact of falling retail sales and rising producer prices to the Fed's decisions on its two-day policy meeting.

The real estate and technology sectors were able to influence the S&P 500, which earlier posted a three-session winning streak, thanks to Exxon Mobil and Chevron boosting the energy sector with an oil rally.

Tom Essaye, a former Merrill Lynch trader said the upcoming Fed meeting may shake the markets because during it, the committee may decide to finally start cutting back their bond purchases.

Hence, the mood for the first half of the day is calm, but if later the Fed hints at a cutback in bond purchases, the market will most likely erupt.

Similarly, Fiona Cincotta, a senior financial markets analyst at City Index, said the same sentiments. According to her, the main event this week is the Fed meeting, and investors are cautiously anticipating whether the central bank will announce a future change in its monetary policy.

But there are analysts who believe that rates will hike only in 2023, and that the Fed will not reduce its bond purchases before the end of this year.

Other key events for this week are:

- policy meeting of Federal Reserve (Wednesday);

- report on Federal budget (Thursday);

- policy meeting of Swiss National Bank and Norges Bank (Thursday);

- policy meeting of Bank of Japan (Friday)