Stocks were mostly higher on Wall Street on Monday (US time) and remained near record highs set last week after investors welcomed an update from the Federal Reserve.

The central bank signalled that it will maintain low interest rates as the economy continues recovering from the pandemic. Markets have been choppy as investors tried to gauge how much and how quickly the Fed will ease its support. A speech by Fed Chair Jerome Powell from Jackson Hole may have helped ease concerns that a key factor in the market’s solid gains this year, low interest rates, will remain for the foreseeable future.

“When you look at it, the impression is things are good and Powell essentially said he’s not the one who’s going to take the punch bowl away,” said Brad McMillan, chief investment officer for Commonwealth Financial Network.

In late trade, the S&P 500 is 0.6 per cent higher, the Dow Jones is flat and the Nasdaq composite has added 1.1 per cent. It sets up the Australian sharemarket for gains, with futures at 5.06am AEST pointing to a jump of 25 points, or 0.3 per cent, at the open.

Technology stocks, which benefit from low interest rates, did much of the heavy lifting for the broader market. Health care companies also had solid gains and helped lift the benchmark S&P 500.

Bond yields edged lower. The yield on the 10-year Treasury fell to 1.28 per cent from 1.31 per cent late Friday.

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Energy prices were mixed as the full impact of Hurricane Ida is still being assessed. The storm will likely take a toll on the energy, chemical and shipping industries that have major hubs along the Gulf Coast, but the impact on the overall US economy should be modest so long as damage estimates don’t rise sharply and refinery shutdowns are not prolonged, economists suggested.

Crude oil prices rose 0.8 per cent, while natural gas prices slumped 2.5 per cent as Colonial Pipeline shut down deliveries in the south until it can assess damage from the storm.