Stocks closed mostly lower on Monday despite oil prices soaring as Treasury yields spiked ahead of a key Federal Reserve meeting.
The Dow Jones industrial average gained about 40 points, closing at a new record high, with Johnson & Johnson contributing the most gains. The S&P 500 fell 0.1 percent, after briefly hitting an all-time high, with a 0.9 percent decline in financials offsetting gains in telecommunications. The Nasdaq composite underperformed, falling 0.6 percent.
The Fed's policymaking committee is set to begin a two-day meeting on Tuesday, where the U.S. central bank is largely expected to raise interest rates by 25 basis points. According to the CME Group's FedWatch tool, market expectations for a rate hike this week are above 95 percent.
Luke Bartholomew, investment manager at Aberdeen Asset Management said "this meeting is more about the guidance on interest rates next year. Everyone is second guessing what a Trump presidency will mean and financial markets think that Trump could spell more inflation and growth. But that outlook is dependent on the vagaries of U.S. politics, and frankly, Trump's own personality."
Stocks have risen sharply since President-elect Donald Trump's surprising victory over Democrat Hillary Clinton, as optimism around the prospects of tax cuts and fiscal spending have flooded the market. Since Nov. 8, the major indexes have risen at least 4.5 percent, with the small-caps Russell 2000 soaring more than 15 percent. The Dow, meanwhile, has posted 15 record closes since then and gains in 21 of the past 25 sessions.