U.S. stocks set fresh closing highs for the year on Tuesday, with the Dow Jones booking its third highest finish in history. Equities rallied as investors waited on the Federal Reserve on Wednesday to provide more insights on the potential path of interest rates. The Dow Jones Industrial Average DJIA added about 173 points, or 0.5%, ending near 36,577, according to preliminary FactSet data. That left the equity gauge on the doorstep of its record close of 36,799.65 set on Jan. 4, 2022, according to Dow Jones Market Data. The S&P 500 index SPX added to its series of fresh closing highs for the year, with a 0.5% gain. The Nasdaq Composite Index COMP rose 0.7%. Fed Chairman Jerome Powell isn’t expected to change rates on Wednesday, even through inflation has eased dramatically from peak levels. Instead, the Fed is expected to keep its policy rate at a 22-year high set in July, and provide an update on where it thinks rates might be in the months and years ahead. The benchmark 10-year Treasury yield BX:TMUBMUSD10Y fell to 4.205% on Tuesday, marking a roughly an 80 basis point drop from its roughly 5% peak set in October. Investors are expecting to hear more from Fed Chair Powell on Wednesday about easing financial conditions in recent months, on the heels of lower, longer-term borrowing costs for the economy.
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