Stocks close at fresh records | Key Fed decision ahead | A year-end rally?

The Dow Jones Industrial Average and S&P 500 pushed to new records on Tuesday.

VIEW IN BROWSER | SUBSCRIBE TUE, NOV 02, 2021 EVENING BRIEF AS OF TUE, NOV 02, 2021 • 05:14 ET DJIA 36052.63 +0.39% +138.79 S&P 500 4630.65 +0.37% +16.98 NASDAQ 15649.60 +0.34% +53.69   Most Active DOW NAME LAST CHG %CHG AAPL 150.02 +1.06 +0.71% INTC 49.86 +0.31 +0.63% MSFT 333.13 +3.76 +1.14% S&P 500 NAME LAST CHG %CHG F 18.01 +0.06 +0.33% AAPL 150.02 +1.06 +0.71% PFE 45.45 +1.81 +4.15% NASDAQ NAME LAST CHG %CHG AAPL 150.02 +1.06 +0.71% AMD 127.63 +2.40 +1.92% TSLA 1,172.00 -36.59 -3.03%   EDITOR'S NOTE The three major U.S. stock indexes closed at record levels on Tuesday, signaling that investors are not afraid of the Federal Reserve's key decision on Wednesday.   Investors bought into stocks that released strong earnings, such as Pfizer, Under Armour, Estee Lauder and DuPont de Nemours. Strong corporate profits are setting up a strong case for a year-end rally. The S&P 500 is up more than 23% year to date.   Wall Street has entered its strongest seasonal period, and historical trends say the recent momentum should carry over. The data points to a strong November and a strong three month period.   The S&P 500 rose 4.8% from August through October, compared to an average gain of 0.2%, according to Bank of America's Stephen Suttmeier.   "When August-October is above average, so is November-April with the SPX up 75% of the time on an average return of 4.08% (4.16% median)," Suttmeier said in a note on Tuesday. All eyes will be on Fed Chair Jerome Powell on Wednesday, as the central bank is expected to announce it will begin unwinding its $120 billion in monthly bond purchases implemented during the pandemic.   Powell's comments on inflation could be the most important message from the Fed, since that may help investors get a sense of the central bank's thinking around interest rate policy.   "My sense is the word 'transitory' has left the station. I would be shocked if we heard that word come up again," said Rick Rieder, chief investment officer of global fixed income at BlackRock.  Maggie Fitzgerald | CNBC Markets Reporter @mkmfitzgerald Watch our live stream for all you need to know to invest smarter. TOP NEWS  S&P 500 rises to another record on strong earnings, Dow gains 130 points Win or lose, Democrats have a tough road ahead after Virginia's governor's race Hertz says Tesla's already started delivering cars even though Musk says there's no signed deal yet Zillow says it's closing home-buying business and cutting 25% of workforce; earnings miss estimates The Fed is about to set its post-crisis policy course — with a high level of uncertainty ahead Democrats reach a breakthrough deal on drug prices, as spending bill nears the finish line Small caps hit new high, look set to break out and drive broader market gains History shows odds are increasing for a year-end rally Shares of Avis double in single day as huge earnings beat sends hedge fund shorts running Facebook plans to shut down its facial recognition program   TOP VIDEO Biden at COP26 climate summit: Private sector going to play an important role in dealing with problem   CNBC PRO These stocks perform the best when inflation is rising, Wolfe Research says   SPECIAL REPORTS Sweating inflation? This risk-free bond pays 7.12% annual interest for the next six months Democrats might not touch these taxes on the wealthy, but they're going up anyway   Unsubscribe Manage Newsletters Terms of Service Join the CNBC Panel Digital Products Feedback Privacy Policy   © 2021 CNBC LLC. All rights reserved. A property of NBCUniversal. 900 Sylvan Avenue, Englewood Cliffs, NJ 07632 Data is a real-time snapshot *Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes and Market Data and Analysis. Data also provided by THOMSON REUTERS Watch our live stream for all you need to know to invest smarter.