Wall Street Close: All eyes turning to the FOMC
|- The Dow Jones Industrial Average added 1.42 points, or 0.01%
- The S&P 500 gained 17.58 points, or 0.52%.
- The Nasdaq composite put on 133.67 points, or 1.21%.
US benchmarks were buoyed again on Tuesday as investors cheered signs of economic recovery, clung to vaccine hopes and awaited what is expected to be a dovish Federal Reserve event on Wednesday.
The S&P 500 ended up slightly with Apple Inc shares AAPL rising the prior day as well as Tuesday giving the indexes boost.
The Dow Jones Industrial Average added 1.42 points, or 0.01%, to 27,994.75, the S&P 500 gained 17.58 points, or 0.52%, to 3,401.12 and the NasdaqComposite put on 133.67 points, or 1.21%, to 11,190.32.
US data on the up
Data on Tuesday showed US factory output increased strongly in August. Separately, US import prices increased more than expected for the same month, supporting the view that inflation pressures were building up. The Empire State manufacturing index outperformed expectations lifting to 17.0pts from 3.7 pts.
Fed in focus
Looking ahead, in its first policy meeting since Fed Chair Jerome Powell announced a more accommodative stance on inflation, the central bank could switch its Treasury purchases toward more long-dated debt to keep long-term yields low.
However, on the hawkish side, analysts at TD Securities warned of the chances that there could be just minimal changes to forward guidance and characterization of QE in the statement.
If there us a more upbeat tone on the outlook following stronger-than-expected data recently and 2023 economic projections consistent with tightening soon after end of 2023, then the risks are bearish for stocks.
S&P 500 levels
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