Stocks Extend Upward Trend Ahead Of Fed Announcement - U.S. Commentary

(RTTNews) - Stocks moved mostly higher during trading on Tuesday, extending the upward trend seen over the past several weeks. With the advance, all three of the major averages reached new record closing highs.

The major averages ended the day firmly in positive territory. The Dow climbed 114.50 points or 0.6 percent to 19,910.93, the Nasdaq jumped 51.29 points or 1 percent to 5,463.83 and the S&P 500 advanced 14.74 points or 0.7 percent to 2,271.70.

The markets continued to benefit from recent upward momentum amid optimism following President-elect Donald Trump's surprise victory last month.

Traders were also looking ahead to the Federal Reserve's monetary policy decision, which is scheduled to be announced on Wednesday.

The Fed is widely expected to increase interest rates by 25 basis points, reflecting the first rate hike in a year.

The accompanying statement is likely to be in focus, as traders gauge the outlook for further monetary policy normalization by the central bank.

Later this week, reports on retail sales, industrial production, and inflation may also attract attention as traders look for clues about the central bank's next move.

Energy, gold and computer hardware stocks saw significant strength on the day, while steel showed a notable move to the downside.

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Tuesday. Japan's Nikkei 225 Index climbed by 0.5 percent, while Hong Kong's Hang Seng Index inched up by 0.1 percent.

The major European markets also moved to the upside on the day. While the U.K.'s FTSE 100 Index jumped by 1.1 percent, the French CAC 40 Index and the German DAX Index advanced by 0.9 percent and 0.8 percent, respectively.

In the bond market, treasuries closed near the unchanged line after seeing initial strength. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, inched up by less than a basis point to 2.481 percent.

The Fed announcement is likely to be in the spotlight on Wednesday, although traders are also likely to keep an eye on reports on producer prices, retail sales and industrial production.