The US markets closed mostly higher on Monday, as investors refrained from making sizable bets ahead of a Federal Reserve meeting that is widely expected to deliver an interest-rate increase. With no economic data, investors were instead focusing on the two-day Federal Open Market Committee meeting that kicks off Tuesday. Investors will be eager to glean signals about the timing and pace of future rate increases from the FOMC’s policy statement. The market is pricing in about three rate increases of a quarter of a percentage point each for 2017. The market sees an 88.6% probability that the policy-setting Federal Open Market Committee will vote for an interest-rate Wednesday, according to data from the CME Group. Expectations for a rate increase were cemented after solid February nonfarm-payroll data on Friday. According to a Federal Reserve Bank of New York survey released showed that a measure of US inflation expectations mostly flattened in February after having risen in the previous two months. The survey of consumer expectations, an increasingly influential gauge of prices for the US central bank, showed that year-ahead inflation expectations were flat at 3 percent last month. The three-year ahead reading edged up to 3 percent, from 2.9 percent in January.
The Nasdaq was up 14.05 points or 0.24 percent to 5,875.78, S&P 500 gained 0.87 points or 0.04 percent to 2,373.47, while the Dow Jones Industrial Average lost 21.5 points or 0.10 percent to 20,881.48.
The Indian ADRs closed mostly in red; Dr. Reddy’s Lab was down 2.85%, HDFC Bank was down 0.29%, Wipro was down 0.12% and Infosys was down 0.06%. On the other hand, Tata Motors was up 0.09%.