Technology stocks were the stars on Tuesday, powering the Nasdaq to another big rise, and the S&P 500 rose slightly slightly as investors hoped the Federal Reserve would stick with its supportive policy stance as the central bank's two-day meeting got under way.
The Dow Jones Industrial Average rose 0.01 percent to 27,995, the S&P 500 gained 0.5 percent to 3,401 and the Nasdaq Composite added 1.2 percent to 11,190.
Apple shares rose on Monday and early in Tuesday's session, giving the indexes a boost. But Apple turned slightly lower in the wake of its product event, which included the rollout of a new virtual fitness service and a bundle of all its subscriptions, Apple One. The stock often dips after running up prior to that event.
The Nasdaq also rose and outperformed the other two major indexes, while the S&P 500 index gained, extending its recovery from a brutal sell-off earlier this month that had halted a Wall Street rally.
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, some strategists said.
"While the economy is slowing, the upcoming macro news should be friendly, which should indicate the Fed will have no change in terms of policy," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
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. (Reuters)