Stocks mixed as dollar rises again

U.S. stocks fluctuated, while the dollar rose and Treasuries slipped as investors kept an eye on upcoming central bank meetings and the special Senate election in Alabama.

The S&P 500 Index climbed to another record, overcoming a dip sparked by Republican Senator Rand Paul tweeting his opposition to adding to the federal debt. The techheavy Nasdaq 100 Index and Nasdaq Composite Index both turned lower, as did the small-cap Russell 2000 Index. Telephone stocks, banks and diversified financial companies were up substantially, while utilities and semiconductors led decliners.

The dollar rose for a fourth straight day and 10-year Treasury yields hit 2.4 percent after data showed signs of inflation in producer prices as the Federal Reserve starts its twoday meeting. The Fed’s expected to raise rates after its meeting on Wednesday, and it’s anticipated that the European Central Bank will reveal details of plans to taper asset purchases on Thursday. The Bank of England and Swiss National Bank will also meet. Comments on the outlook for 2018 will be the focus for investors as they weigh the impact of coming policy normalization on global asset prices.

“PPI final demand prices are rising 3 percent, and this will give Fed officials that are cautious on the inflation outlook the confidence to raise rates this week,” Chris Rupkey, chief financial economist at MUFG Union Bank, wrote in an email.

In Europe, stocks pushed to a five-week high amid a $5 billion deal in the tech sector. The euro weakened and most European bonds declined as German investor confidence slid in December for the first time in four months.