Slight Gains in US Stocks Lift Dow, S&P, Nasdaq to New Highs
Trading was subdued overall as investors looked ahead to Wednesday, 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.
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.
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.
Speculation that the Fed will announce plans to unwind its bond portfolio helped lift shares in banks and other financial companies.
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.
"That does have an impact on the bond market, and you see the bond market going slightly higher here over the last two days."