Markets mixed but “Fed coming to the rescue again”

Markets were mixed on Tuesday.

The S&P 500 rose 0.3 percent, the STOXX Europe 600 fell less than 0.1 percent and the Shanghai Composite plunged 1.7 percent.

Oil fell after surging on Monday. West Texas Intermediate crude fell 5.7 percent and Brent fell 6.5 percent.

Ahead of the Federal Reserve's monetary policy decision on Wednesday, the yield on the US 10-year Treasury note fell to 1.81 percent from 1.843 percent on Monday.

US economic data on Tuesday were positive, with industrial production showing a 0.6 percent rise in August and the National Association of Home Builders’ monthly confidence index rising one point to 68 in September.

Nela Richardson, investment strategist at Edward Jones, said that the Federal Reserve is likely to help keep the economic expansion going and therefore allow stocks to rise further.

“This bull market could tread on even though we are in the latter stages of it,” Richardson said. “Remember that it is rising interest rates that haunt markets not lower rates.”

“The Fed is coming to the rescue again,” said Troy Gayeski, co-chief investment officer at SkyBridge Capital.