LIVE MARKETS-Stocks strike optimistic note before Fed statement

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STOCKS STRIKE OPTIMISTIC NOTE BEFORE FED STATEMENT

Stocks gained broadly on Tuesday for the second consecutive day on optimism that higher oil prices won’t lead to a significant uptick in inflation ahead of a Federal Reserve policy meeting on Wednesday.

The Fed is expected to hold interest rates steady and update its interest rate and economic projections.

Analysts say that the United States economy is better positioned to handle oil price volatility than in recent decades, even though higher inflation remains a risk.

With the Fed expected to remain on hold for the next several months, traders will focus on comments by Fed Chair Jerome Powell on Wednesday for any fresh clues on the path of monetary policy.

Traders are pricing in 27 basis points of cuts by year-end, down from over 50 basis points before the U.S.-Israel war on Iran broke out two and a half weeks ago.

Airline and travel stocks were also buoyed after Delta Air Lines DAL.N and American Airlines Group AAL.O both raised their revenue guidance for the current quarter.

The Nasdaq Composite .IXIC was the strongest major index, rising by 0.47%, while the S&P 500 .SPX and Dow Jones Industrial Average .DJI ended up 0.25% and 0.10%, respectively.

Energy .SPNY led S&P 500 sector gainers, up 1%, while healthcare .SPXHC was the weakest performer, ending down 0.92%.

Here is Tuesday’s closing market snapshot:

(Karen Brettell)

EARLIER ON LIVE MARKETS:

SMALL BUSINESSES INCREASE TECH SPENDING CLICK HERE

WELLS FARGO STRATEGIST FAVORS REBALANCING OVER GOLD, OIL BETS AMID IRAN WAR CLICK HERE

OIL SHOCKS HIT US ECONOMY LESS HARD, BUT INFLATION RISK LINGERS CLICK HERE

ENERGY, FINANCIAL STOCKS LIFT WALL STREET AS FED MEETING LOOMS CLICK HERE

LEVERAGED ETF FLOWS SIGNAL TUG-OF-WAR BETWEEN NASDAQ BULLS AND BEARS CLICK HERE

IRAN WAR A MANAGEABLE SHOCK, SAY SOCIETE GENERALE CLICK HERE

WAR DENTS INVESTOR SENTIMENT TOWARDS EUROPEAN STOCKS- BOFA SURVEY CLICK HERE

EUROPEAN STOCKS PRETTY CALM CLICK HERE

EUROPE BEFORE THE BELL: OIL UP, SHARES DOWN CLICK HERE

MORNING BID: CENTRAL BANKS GIRD FOR OIL SHOCKS AS RBA VOTES 5-4 TO HIKE CLICK HERE