The Bank of Japan and the Bank of England also meet this week, although no major policy changes are expected.
The gap between benchmark U.S and European bond yields held near its widest in a month as the Fed meeting also shone a light on the slow pace of change in European Central Bank policy.
The Canadian dollar hit a two-month high after Bank of Canada Governor Stephen Poloz said the central bank’s 2015 rate cuts “have largely done their work,” signaling that it could raise rates sooner than previously thought.The U.S.
The S&P materials index was up 0.9 percent, and the S&P energy index, which is this year’s weakest-performing group, was up 0.6 percent.The Dow Jones Industrial Average was up 88.05 points, or 0.41 percent, to 21,323.72, the S&P 500 had gained 9.98 points, or 0.41 percent, to 2,439.37 and the Nasdaq Composite had added 37.03 points, or 0.60 percent, to 6,212.50.Tuesday’s stock market action reflected “a continuation of running up some of the areas that have not participated over the course of the last few months, in combination with some speculation that the Fed is going to be more resolute about raising rates,” said Bruce McCain, chief investment strategist at Key Private Bank in Cleveland.
The pan-European STOXX 600 was up 0.6 percent, while MSCI’s gauge of stocks across the globe was up 0.5 percent.Oil prices edged higher after OPEC detailed supply cuts around the world.Brent crude futures rose 0.9 percent to settle at $48.72 per barrel, while benchmark U.S.