US blue chip stocks rose on Wednesday as optimism about possible take-overs and a drop in oil prices tempered caution ahead of the Federal Reserve's interest-rate decision. The Fed's policy statement, expected at 2:15 pm (1815 GMT), may provide clues about the outlook for rates this year.
Policy-makers are expected to hold the benchmark overnight federal funds rate target steady at 5.25 percent. IBM was the biggest boost to the Dow after a brokerage upgrade sent the company's stock up 1 percent.
The latest possible take-over target, mining company Rio Tinto Plc saw its shares surge on talk larger rival BHP Billiton was planning a bid to create the world's fifth largest company. The Dow Jones industrial average was up 25.19 points, or 0.19 percent, at 13,334.26.
The Standard & Poor's 500 Index was up 1.48 points, or 0.10 percent, at 1,509.20. The Nasdaq Composite Index was down 3.71 points, or 0.14 percent, at 2,568.04. Initially stocks had traded lower in a narrow range, but a sharp drop in crude oil prices lent support and helped the Dow hit another record at 13,344.34.
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