U.S. stocks pared early losses to close narrowly mixed Monday, as investors awaited the U.S. Federal Reserve's two-day policy meeting later this week. The Dow Jones Industrial Average rose 15.82 points, or 0.09 percent, to 17,229.13. The S&P 500 fell 2.55 points, or 0.13 percent, to 2,019.64. The Nasdaq Composite Index edged up 1.81 points, or 0.04 percent, to 4,750.28.
The Fed will kick off its highly-anticipated policy meeting on Tuesday and hold a press conference on Wednesday. Most analysts expect the U.S. central bank will not raise its interest rates at this meeting. "The Fed meeting this week is unlikely to end with a rate hike, but with a statement, summary of economic projections and press conference, there's ample opportunity for communication," said Chris Low, chief economist at FTN Financial, in a note.
With no major economic data due out Monday, oil prices were also in focus, which tumbled as Iran planned to increase its production to the level before the sanction. U.S. stocks have rallied for the past four consecutive weeks, buoyed by rebounding commodities prices, upbeat economic data and stimulus announcements from the European Central Bank.
Overseas, Chinese shares jumped on Monday, with investor sentiment lifted by regulator assurance that it is premature to consider withdrawing government bailout funds from the market. The benchmark Shanghai Composite Index gained 1.75 percent to close at 2,859.5 points. European equities also closed higher on Monday despite the oil slip. German benchmark DAX index at Frankfurt Stock Exchange gained 1.62 percent, while British benchmark FTSE 100 Index moved up 0.57 percent.
The CBOE Volatility Index, often referred to as Wall Street's fear gauge, increased 2.55 percent to end at 16.92 on Monday.
In other markets, oil prices dropped as Iran planned to increase its production to the level before the sanction. The West Texas Intermediate for April delivery moved down 1.32 U.S. dollars to settle at 37.18 dollars a barrel on the New York Mercantile Exchange, while Brent crude for May delivery decreased 86 cents to close at 39.53 dollars a barrel on the London ICE Futures Exchange.
The U.S. dollar increased against other major currencies as investors were awaiting the closely-watched Fed policy meeting this week. In late New York trading, the euro fell to 1.1083 dollars from 1.1155 dollars in the previous session, while the dollar bought 113.82 Japanese yen, higher than 113.73 yen of the previous session.
Gold futures on the COMEX division of the New York Mercantile Exchange fell as U.S. equities and the U.S. dollar rose ahead of the Fed meeting. The most active gold contract for April delivery fell 14.3 dollars, or 1.14 percent, to settle at 1,245.10 dollars per ounce.
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