NEW YORK (AP) — Stock closed modestly higher on Wall Street Tuesday as investors await Wednesday's decision by the Federal Reserve on interest rates.

The S&P 500 rose 0.5%, the Dow Jones Industrial Average rose 0.2% and the Nasdaq rose 0.2%.

The Fed is expected to raise its benchmark rate by twice the usual amount this week as it steps up its fight against inflation, which is at a four-decade high.

Banks and other financial stocks helped lift the market. Energy stocks gained ground following solid earnings reports from BP and Devon Energy. Bond yields fell.