US stocks rise with Fed meeting in focus

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IANS | 16 Sep, 2020
US stocks finished higher as Wall Street paid close attention to a key meeting by the Federal Reserve.

On Tuesday, the Dow Jones Industrial Average rose 2.27 points, or 0.01 per cent, to 27,995.60. The S&P 500 climbed 17.66 points, or 0.52 per cent, to 3,401.20. The Nasdaq Composite Index jumped 133.67 points, or 1.21 per cent, to 11,190.32, Xinhua news agency reported.

Shares of big US tech names such as Amazon, Facebook, Netflix and Google-parent Alphabet all closed higher.

Eight of the 11 primary S&P 500 sectors moved higher, with communication services and real estate up 1.72 per cent and 1.39 per cent, respectively, outpacing the rest. Technology advanced 1 per cent. Financials, however, slipped 1.36 per cent, the worst-performing group.

US-listed Chinese companies traded mostly higher, with six of the top 10 stocks by weight in the S&P US Listed China 50 index ending the day on an upbeat note.

The US central bank kicked off its two-day policy meeting on Tuesday. Investors awaited reassurance from the Federal Reserve that monetary policy will remain accommodative for the foreseeable future.

"One of the highlights of this week Fed's policy meeting is likely to be greater clarity on the implementation of the shift towards an average inflation target," analysts at UBS said in a note Tuesday.

"The move will make it easier for the Fed to tolerate moderately higher levels of inflation before tightening policy," they said.

Market sentiment also got a boost after data showed China's economic recovery continued picking up steam last month, with major economic indicators further improving as the country's efforts to boost growth amid the COVID-19 slowdown gradually paid off.