Investing.com – U.S. stocks traded with mixed signs on Monday as both the Dow and Nasdaq struggled to maintain a four-week rally with investors taking stock of Fed expectations and oil selling off.
As a reminder, U.S. clocks were set ahead one hour on March 13 due to daylight savings time reducing the difference between New York and GMT to four hours.
At 15:46GMT or 11:46 ET, the Dow 30 edged up 4 points or 0.02%, while the S&P 500 gave up 5 points or 0.27% and the tech-heavy NASDAQ Composite inched ahead 1 point or 0.03%.
Market participants were busy on Monday making adjustments to their portfolios based on expectations for the message from the Federal Reserve on Wednesday.
Experts do not expect a change in rates to come at the meeting, but given that Fed members will be updating their economic projections, including the “dot plot” that maps out their expectations for interest rates over time, and the fact that the statement will be followed by a press conference from Fed Chair Janet Yellen, traders will be watching for signs that indicate the future path of policy tightening.
Although some economists think the Fed will try and keep April on the table for the first move, most don’t expect the possibility of further tightening until June at the earliest.
Additionally, investors watched as oil prices moved down, pulling back from a 3-month high, after Iranian Oil Minister Bijan Zanganeh said his country won't join a group production freeze until is output returns to normal levels.
Adding to the bearish sentiment, OPEC predicted on Monday that global demand for its crude oil this year will be less than previously thought.
However, a meeting between oil producers, OPEC and non-OPEC, on an output freeze is likely to take place in mid-April, according to OPEC sources cited by Reuters, while the Russian energy minister said that a deal could materialize then.
U.S. crude futures fell 4.21% to $36.88 by 15:49 GMT or 11:49AM ET, while Brent oil traded down 2.80% to $39.27.
Of note on the business front, Starwood Hotels & Resorts Worldwide (NYSE:HOT) surged 7% in the pre-market after receivinga takeover bid of $76 a share from a Chinese consortium that could overthrow a prior offer from Marriot International (NASDAQ:MAR).
In other M&A news, The Fresh Market Inc (NASDAQ:TFM) shot up almost 24% after an offer from Apollo Globl Man (NYSE:APO).
Among blue-chips, shares in Pfizer (NYSE:PFE) slumped 1.3% and led the declines on the Dow after one of its popular cough syrups was banned in India.