U.S. stocks rebounded Tuesday, with both the Dow and the S&P 500 setting new closing records, as the Federal Reserve kicked off its two-day policy meeting.
The Dow Jones Industrial Average rose 92.80 points, or 0.44 percent, to 21,328.47. The S&P 500 added 10.96 points, or 0.45 percent, to 2,440.35.
The Nasdaq Composite Index was up 44.90 points, or 0.73 percent, to 6,220.37.
Analysts widely expected the U.S. central bank to raise interest rates by a quarter point at this meeting.
Equities traded higher despite the expectation as it has already been priced in by the Wall Street.
Market expectations for a June rate hike were 99.6 percent Tuesday, according to the CME Group's FedWatch tool.
Investors will also watch closely any clues about how the Federal Reserve plans to unwind its massive 4.5-trillion-U.S.-dollar balance sheet.
Technology shares, which witnessed their biggest two-day decline since December in the past two sessions, rebounded steadily Tuesday, providing some upward jolts to the market.
On the economic front, the Producer Price Index (PPI) for final demand was unchanged in May, seasonally adjusted, the U.S. Labor Department reported Tuesday. On an unadjusted basis, the final demand index increased 2.4 percent for the 12 months ended in May.
"Wholesale prices moderated a bit in May, but the rising trend in core prices has not yet turned. In the meantime, falling consumer inflation - in the U.S. and globally - is not likely to be boosted by the PPI unless it picks up considerably further," said Chris Low, chief economist at FTN Financial, in a note.
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