US: Dow, S&P 500 end at record as tech shares rally

[NEW YORK] The Dow and S&P 500 finished at records Tuesday after technology stocks shook off a two-day slump to lead the market higher ahead of a much-anticipated Federal Reserve decision.

The Dow Jones Industrial Average rose 0.4 per cent to close the session at 21,328.47.

The S&P 500 gained 0.5 per cent to end at 2,440.35, narrowly topping its prior record, and the tech-rich Nasdaq Composite Index jumped 0.7 per cent to 6,220.37.

Investors seemed to breathe a sigh of relief after a two-day retreat in Apple, Facebook and other high-flying technology shares reversed direction as investors stepped in to take advantage.

Some investors had worried the pullback in tech stocks might be a harbinger of a correction in the broader market.

"With some of the losses that those stocks have suffered, investors are coming in and looking at getting those stocks cheaper, so I think that's why you are seeing the market up today," said Bill Lynch, director of investment at Hinsdale Associates.

Amazon, Facebook, Microsoft and Tesla Motors all gained more than one per cent, while Apple climbed 0.8 per cent and Netflix 0.9 per cent.

The Fed opened its two-day policy meeting and is widely expected to raise interest rates at the conclusion on Wednesday.

Fed Chair Janet Yellen's quarterly press conference will be scrutinised for signs of whether further tightening is likely this year - something increasingly in doubt - and for details on the plan to reduce the size of the central bank's securities holdings.

AFP