Wall Street capped a day of mostly listless trading Tuesday with a slight gain, good enough to lift the major U.S. stock indexes to another set of all-time highs.
The Standard & Poor's 500 index rose 2.78 points, or 0.1 percent, to 2,506.65. The index, regarded as the broadest measure of the stock market, has hit a record high three days in a row.
The Dow Jones industrial average gained 39.45 points, or 0.2 percent, to 22,370.80. The average is on a six-day streak of new highs.
The Nasdaq composite added 6.68 points, or 0.1 percent, to 6,461.32. The tech-heavy index also notched a new high, its first since last Wednesday.
The Russell 2000 index of smaller-company stocks declined 0.68 points, or 0.1 percent, to 1,440.40.
Banks, insurers and other financial companies led the gainers. Technology companies also helped lift the market. Health care stocks lagged the most, pulling down insurers, hospital operators and other companies as a Republican effort to repeal President Barack Obama's health care law appeared to gain momentum. Oil prices fell.
Trading was subdued overall as investors looked ahead to today, when the Federal Reserve was expected to deliver an update on the central bank's view of the economy and the timing of its plans to raise interest rates and shrink its bond holdings.
"People are still, as they usually are the day before a Fed announcement, kind of in a wait-and-see mode," said Lindsey Bell, investment strategist at CFRA Research.
The major stock indexes wavered in early trading, but recovered to hold their small gains by afternoon. Investors sized up new economic data that showed the pace of U.S. home construction slowed in August due to a steep drop in apartment construction. A separate report on business confidence showed optimism among chief executive officers reached its highest level since early 2014.
Mostly, though, investors were focused on what the Fed will say today.
Forecasters expect the Fed to leave interest rates unchanged and stick to plans to raise rates in December. But traders will be listening for word on whether the central bank is ready to begin shrinking its multitrillion-dollar stockpile of bonds.
Such a move would allow the Fed to effectively raise interest rates without touching its key short-term rate, known as the federal funds rate, said Phil Blancato, CEO of Ladenburg Thalmann Asset Management.
"That's the most important aspect here," Blancato said. "That does have an impact on the bond market, and you see the bond market going slightly higher here over the last two days."
Bond prices fell Tuesday, sending the yield on the 10-year Treasury note up to 2.24 percent from 2.23 percent late Monday.
Speculation that the Fed will announce plans to unwind its bond portfolio helped lift shares in banks and other financial companies. Such a move by the Fed would likely push long-term interest rates up. Banks benefit from higher rates, which can translate into higher profits from lending money. U.S. Bancorp shares rose 78 cents, or 1.5 percent, to $53.16. Wells Fargo & Co. rose 65 cents, or 1.2 percent, to $53.36.
Benchmark U.S. crude fell 43 cents, or 0.9 percent, to settle at $49.48 a barrel on the New York Mercantile Exchange. Brent crude, used to price international oils, gave up 34 cents, or 0.6 percent, to close at $55.14 a barrel in London.
Business on 09/20/2017