The economic highlight of the week will take place on Wednesday — the Federal Reserve's latest policy announcement.
The S&P 500 advanced 0.1% to 2506.65, a new all-time high, while the Dow Jones Industrial Average rose 39.45 points, or 0.2%, to 22,370.80, also a record. Yippee! The new highs came as the Fed began their two-day meeting at which it's expected to announce the start of its balance-sheet shrinking. NatWest Markets' Brian Daingerfield and team don't expect the Fed to "push the envelope." They explain: If we are right, we aren’t expecting tomorrow’s FOMC decision to really push the envelope further, in either direction, and at the end of the day the dynamic of the FOMC signaling gradual rate hikes while the market continues to price well below that possibility will remain in place.
Global stock markets inched higher on Tuesday and the dollar dipped as investors awaited signals from the U.S. Federal Reserve on when it will hike interest rates again and start shrinking its balance sheet. All three major U.S. stock indexes hit record closing highs, with financial shares providing the biggest boost.