05:10 PM EST, 01/28/2025 (MT Newswires) -- The S&P 500 and Nasdaq Composite rebounded Tuesday from a technology-led selloff the prior session as the Federal Reserve's two-day monetary policy meeting got underway.

The tech-heavy Nasdaq rose 2% to 19,733.6, while the S&P 500 added 0.9% to 6,067.7. Both equity indexes closed sharply lower Monday amid potential artificial intelligence competition from Chinese startup DeepSeek.

The Dow Jones Industrial Average increased 0.3% to 44,850.4 Tuesday. Among sectors, tech led the gainers, followed by communication services. Consumer staples saw the steepest decline.

Chip-making giant Nvidia's ( NVDA ) shares jumped 8.9%, the best performer on the Dow and among the best on the S&P 500 and the Nasdaq, following a nearly 17% decline Monday. Tech giants Apple ( AAPL ) and Microsoft ( MSFT ) were among the top gainers on the Dow.

Markets widely expect the central bank's Federal Open Market Committee to hold interest rates steady Wednesday, according to the CME FedWatch tool.

"The Fed is likely to focus on the elevated and uncertain pathway of price pressures and the reduced risk of weakness in the labor market as justification to pause further policy adjustments, at least for now, as the committee continues to assess the incoming data and impact of fiscal policy," Stifel said in a Tuesday note to clients.

The US 10-year yield rose one basis point to 4.53%, while the two-year rate was little changed at 4.2%.

In economic news, US consumer confidence retreated this month as views on current labor market conditions deteriorated for the first time since September, the Conference Board said.

US home prices increased to a new record in November as annual growth accelerated, S&P Global ( SPGI ) division S&P Dow Jones Indices said.

Separately, the Federal Housing Finance Agency said home prices increased 0.3% on a seasonally adjusted basis in November, compared with October's upwardly revised 0.5% growth. The latest reading matched the consensus in a survey compiled by Bloomberg.

US durable goods orders unexpectedly fell in December amid a plunge in nondefense aircraft, government data showed.

Manufacturing activity in the US Mid-Atlantic region saw a surprise improvement in January, but remained in contraction territory, according to Richmond Fed data.

West Texas Intermediate crude oil increased 1% to $73.89 a barrel.

In company news, Royal Caribbean Group (RCL) shares jumped 12%, the best performer on the S&P 500. The company issued an upbeat full-year earnings outlook after delivering a fourth-quarter beat.

General Motors ( GM ) outlined a strong bottom-line outlook for the full year as the automaker's fourth-quarter results topped market expectations. Its shares dropped 8.9%, the second-steepest decline on the S&P 500.

JetBlue Airways' ( JBLU ) fourth-quarter results came in better than expected, while the airline said it expects operating expenses to continue growing this year. The company's shares sank nearly 26%.

Gold rose 1.2% to $2,772.30 per troy ounce, while silver gained 1.7% to $30.92 per ounce.