Stocks finished mixed Tuesday as the Dow Jones Industrial Average and S&P 500 fell from records and investors turned their attention to the Federal Reserve for the central bank's projections on the economy.
The Dow Jones Industrial Average finished down 127 points, or 0.39%, to 32,825. The blue-chip index closed higher Monday for a seventh straight session.
The S&P 500 slipped 0.16% but did set an all-time intraday high during the session. The Nasdaq finished up 0.09%.
Investors have been keeping a close eye on rising Treasury yields, with many saying inflation will move higher after President Joe Biden signed a new $1.9 trillion stimulus bill and as the U.S. economy recovers. The yield on the 10-year Treasury rose to 1.621% Tuesday.
Fears of rising inflation likely will be on the minds of investors when the Federal Reserve begins a two-day meeting on Tuesday. Federal Reserve Chairman Jerome Powell has said inflation likely will rise as the economy recovers, but he also says it will be temporary.
Economists expect Powell to indicate that the Fed will tolerate higher inflation to get the U.S. back to full employment.
"The short-term key to this market continues to be interest rates," according to Real Money contributor James "Rev Shark" DePorre.
"The Federal Open Market Committee is starting its two-day policy meeting here on Tuesday and will announce its policy on Wednesday. The market seems to be anticipating that there will be an effort to reassure participants that inflation is under control and no immediate action is needed."
Sweden became the latest nation to pause its use as European regulators continue to review safety data following reports of dangerous blood clots in some recipients. AstraZeneca American depositary receipts rose 2.6%,