(Updates with market moves at the end of the day.)
The Dow Jones Industrial Average rose for a third straight session on Tuesday, supported by upbeat earnings reports, a day before the Federal Reserve announces its interest rate decision.
The Dow ended the session 1% higher at 52,747.32, while the S&P 500 added 0.2% to 7,428.78. The Nasdaq Composite fell 0.2% to 24,876.91, its fifth consecutive day in the red. Most sectors were in the green, led by health care, while energy saw the sharpest drop.
Sherwin-Williams (SHW) jumped 8.3%, the best performer on the Dow and the third-top gainer on the S&P 500, after the paint and coating manufacturer reported stronger-than-expected second-quarter results and raised its full-year outlook.
Coca-Cola (KO) and Boeing (BA) were also among the biggest gainers on the Dow, advancing by 5% and 4.8%, respectively.
The beverage giant raised its full-year earnings growth outlook as it reported stronger-than-expected second-quarter results. The planemaker's second-quarter loss exceeded Wall Street's estimates, while its free cash flow turned positive.
Chip stocks were among notable laggards, with Sandisk (SNDK) down 14%, the worst performer on the S&P 500. Micron Technology (MU) shed 8.9%, Advanced Micro Devices (AMD) declined 8.2% and Intel (INTC) was off by 5.9%.
The Federal Open Market Committee's meeting began Tuesday, with a decision due Wednesday. The probability of the central bank leaving its benchmark lending rate unchanged was at about 69%, with the remaining odds in favor of a quarter-percentage-point increase, according to the CME FedWatch tool.
With markets expecting no change to the Fed's monetary policy settings, the focus will be on the path forward for interest rates.
Last month's bout of disinflation "only further complicates expectations for future inflation and the outlook for rates," Stifel said in a report Tuesday.
"The doves are optimistic that inflation could cool further into year-end as the impact of tariffs rolls off and energy prices stabilize," the brokerage said. "The recent rise in tensions overseas, however, coupled with (artificial intelligence)-sector price pressures suggest further upside inflationary risks remain, shifting the pendulum back into the hawk's camp."
West Texas Intermediate crude oil declined 4.4% to $78.99 a barrel in Tuesday late-afternoon trade, while Brent dropped 5.2% to $83.73.
"The oil market continues to sell off heavily, with the US and Iran continuing to hold off on further strikes," ING said.
President Donald Trump said Monday that there was "a good chance" of a deal with Iran as talks continued, Reuters reported.
Treasury yields were lower, with the two-year rate down 4.6 basis points at 4.28% and the 10-year rate falling 4.1 basis points to 4.6%.
In economic news, US consumer confidence unexpectedly fell in July, with "little improvement" in business conditions expected over the next six months, a survey by the Conference Board showed.
Gold fell 1.3% to $4,023.90 per troy ounce, while silver lost 2.3% to $57.35 per ounce.
