Markets are primed for a dovish statement from the Federal Reserve on Wednesday that should keep a lift in stocks.
The Dow and S&P 500 rallied to record highs Tuesday, as traders bet on an uneventful outcome when the Fed ends its two-day meeting Wednesday afternoon.
“They put the possibility of a surprise tapering at zero,” said Art Cashin, director of floor operations at UBS. He said there was some short-covering as traders assumed the Fed would not announce any reduction in its $85 billion monthly bond-buying program.
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