S&P, Dow hit new record highs as North Korea tensions ease

Wall Street hit new life highs after open on Monday lifted by industrials and financials stocks as tensions eased on the Korean peninsula and focus shifted to the Federal Reserve's meeting.

Caterpillar's 1.8 percent rise was the biggest boost on the Dow while the S&P and the Nasdaq were lifted by Nvidia's 3.6 percent increase.

A relatively quiet North Korea and U.S. Secretary of State Rex Tillerson's comments on "peaceful solution" over the weekend have calmed investors.

However, the tensions could be back in focus with U.S. President Donald Trump set to address world leaders at the United Nations on Tuesday.

The Federal Open Market Committee's two-day meeting starting on Tuesday is unlikely to result in an interest rate increase, but investors will focus on how Fed Chair Janet Yellen views recent inflation readings for clues on the timing of further rate hikes.

The central bank is also expected to announce plans to begin unwinding its $4.2 trillion portfolio of Treasuries and mortgage-backed securities, nearly a decade after the global financial crisis.
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