Investing.com – U.S. stocks closed mixed on Monday, as investors eyed the upcoming two-day Federal Reserve policy meeting while healthcare stocks lagged.
In what was a muted day on Wall Street, U.S. equities were restricted to a narrow a trading range, ahead of the Federal Reserve’s two-day policy meeting on March 14-15, as investors’ expectation of a rate hike later this week soared to its highest level.
According to Investing.com’s Fed rate monitor tool, 95% of traders expect the Federal Open Market Committee (FOMC) to hike interest rates from 0.75% to 1% on Wednesday.
Financials, mainly banks, moved higher on the prospect of an increase in interest rates but ultimately failed to move the broader market as healthcare stocks lagged.
Healthcare stocks slumped in early morning trade as market participants awaited an update from the Congressional Budget Office, which is expected to reveal an estimate of how many people would have health insurance coverage under a Republican proposal that seeks to replace Obamacare.
After the U.S. closing bell on Monday, The Congressional Budget Office revealed its estimation that fourteen million more people would become uninsured next year if the Republican proposal to repeal and replace Obamacare is signed into law.
In corporate news, Intel (NASDAQ:INTC) shares came under pressure, after the company announced a plan to buy Israeli driverless technology firm Mobileye (NYSE:MBLY) for $15.3 billion. Shares of Intel nosedived 2% while shares of Mobileye jumped nearly 30%.
The Dow Jones Industrial Average closed 0.10% lower at 20,881. The S&P 500 closed 0.04% higher and the Nasdaq Composite closed 0.24% higher at 5,875.
The top S&P 500 gainers included Citrix Systems Inc (NASDAQ:CTXS) up 6.8%, and Wynn Resorts Limited (NASDAQ:WYNN) up 4.8%, while Delphi Automotive plc (NYSE:DLPH) added 4%.
Urban Outfitters Inc (NASDAQ:URBN) down 3.8%, American Airlines Group (NASDAQ:AAL) down 3.5% and United Continental Holdings Inc (NYSE:UAL) slumped 3.4%, were among the worst S&P 500 performers of the session.