1st LD Writethru: U.S. stocks end mixed ahead of Fed meeting

U.S. stocks pared early losses to close narrowly mixed Monday, as investors awaited the U.S. Federal Reserve's two-day policy meeting later this week.

The Dow Jones Industrial Average rose 15.82 points, or 0.09 percent, to 17,229.13. The S&P 500 fell 2.55 points, or 0.13 percent, to 2,019.64. The Nasdaq Composite Index edged up 1.81 points, or 0.04 percent, to 4,750.28.

The Fed will kick off its highly-anticipated policy meeting on Tuesday and hold a press conference on Wednesday. Most analysts expect the U.S. central bank will not raise its interest rates at this meeting.

"The Fed meeting this week is unlikely to end with a rate hike, but with a statement, summary of economic projections (with a new dotplot) and press conference, there's ample opportunity for communication," said Chris Low, chief economist at FTN Financial, in a note.

With no major economic data due out Monday, oil prices were also in focus, which tumbled as Iran planned to increase its production to the level before the sanction.

U.S. stocks have rallied for the past four consecutive weeks, buoyed by rebounding commodities prices, upbeat economic data and stimulus announcements from the European Central Bank.

Overseas, Chinese shares jumped on Monday, with investor sentiment lifted by regulator assurance that it is premature to consider withdrawing government bailout funds from the market. The benchmark Shanghai Composite Index gained 1.75 percent to close at 2,859.5 points.

European equities also closed higher on Monday despite the oil slip. German benchmark DAX index at Frankfurt Stock Exchange gained 1.62 percent, while British benchmark FTSE 100 Index moved up 0.57 percent. Endit