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S&P 500, Nasdaq notch record closing highs ahead of CPI, Fed decision

The Nasdaq and the S&P 500 rose on Tuesday to end at alltime highs, reversing early losses as investors gotten ready for upcoming inflation information and the U.S. Federal Reserve's policy meeting.

Benchmark Treasury yields extended their decrease ahead of the Labor Department's Customer Rate Index (CPI) report.

Apple shares assisted put the tech-heavy Nasdaq out front, while the blue-chip Dow Jones Industrial Average ended lower. The S&P 500 likewise turned green as Fed policy makers assembled for their two-day policy conference.

Financiers are playing it safe, with tomorrow's CPI report despite the fact that it's expected to reveal a small decline, stated Sam Stovall, primary investment strategist of CFRA Research study in New York.

( But) we continue to see all-time highs, and you don't. wish to make psychological decision, Stovall included. CPI might come. in weaker than anticipated, and the Fed might sound positive that. a minimum of one rate cut might occur before year-end.

While investors anticipate no modification to the Fed funds target. rate, the Federal Open Markets Committee (FOMC) is anticipated to. launch its Summary of Economic Projections, which must help. light up the central bank's forward policy course.

The data-reliant Fed will see whether the CPI information due. early Wednesday shows, as anticipated, that inflation was still. meandering down towards the central bank's 2% annual target.

The report follows Friday's hotter-than-expected U.S. wage. growth numbers.

French President Emanuel Macron's statement that he will. call a flash election kept adding fuel to the fire of a. troubled year in geopolitics, which has boosted the dollar.

With Europe leaning to the right, with Modi losing his. majority, and Mexico's election, modification is in the air, Stovall. said, more unpredictability in Europe will contribute to the strength of. the U.S. dollar.

The Dow Jones Industrial Average fell 120.62 points,. or 0.31%, to 38,747.42, the S&P 500 acquired 14.53 points,. or 0.27%, to 5,375.32 and the Nasdaq Composite included. 151.02 points, or 0.88%, to 17,343.55.

European shares extended the previous session's losses. triggered by political unpredictabilities in France, as financiers. turned their focus to the Fed.

The pan-European STOXX 600 index lost 0.93% and. MSCI's gauge of stocks across the globe shed. 0.06%.

Emerging market stocks lost 0.41%. MSCI's broadest index of. Asia-Pacific shares outside Japan closed 0.64%. lower, while Japan's Nikkei rose 0.25%.

U.S. Treasury yields dipped after a well-received auction. ahead of the CPI information.

Benchmark 10-year notes last rose 18/32 in cost. to yield 4.3981%, from 4.469% late on Monday.

The 30-year bond last increased 33/32 in price to. yield 4.5318%, from 4.595% late on Monday.

The dollar got some ground versus a basket of world. currencies, touching a four-week high in anticipation of the CPI. inflation report, while the euro dropped in the middle of political turmoil. brought about by far best gains in European elections and the. snap election in France.

The dollar index increased 0.09%, with the euro. down 0.22% to $1.0739.

The Japanese yen weakened 0.03% to 157.11 per dollar, while. sterling was last trading at $1.274, up 0.08% on the day.

Petroleum costs edged higher after the Energy Details. Administration (EIA) raised its world oil demand forecast.

U.S. crude increased 0.21% to settle at $77.90 per. barrel, while Brent settled at $81.92 per barrel, up. 0.36% on the day.

Gold prices reversed an earlier drop and were last modestly. greater as financiers kept their focus on the Fed's financial. outlook.

Area gold added 0.2% to $2,315.46 an ounce.

(source: Reuters)