S&P 500 hits record as Fed meets

Markets were mostly higher on Tuesday.

The S&P 500 rose 0.2 percent to close at another record high while the STOXX Europe 600 rose 0.7 percent. However, the Nikkei 225 fell 0.3 percent.

The Federal Reserve began its monetary policy meeting on Tuesday, with a rate hike “highly priced in”, according to Kjersti Haugland, chief economist at DNB.

“Market participants are more concerned about a looming recession or low inflation,” Haugland said. “The risk here is that the Fed is correct and wage inflation and consumer inflation will come back with vengeance, in which case they will have to be more aggressive.”