The Dow Jones industrial average gained 20.72 to close at 5,888.46, just shy of Monday's record close of 5,889.20. Last Friday, the Dow notched its first new high in nearly four months, capping a rapid rebound from July's selloff.
Advancers beat decliners by an 11-to-7 margin on the New York Stock Exchange, with 1,437 up, 910 down and 859 unchanged. NYSE volume totaled 514.32 million, vs. 395.88 million yesterday.
The Standard & Poor's 500-stock index and the NYSE composite index both set new highs. The S&P 500 rose 4.02 to 687.02; The NYSE's index rose 1.83 to 365.77. The Nasdaq index rose 7.59 to 1,219.68 and the American Stock Exchange index fell 0.24 to 565.20.
With no major economic news to steer market sentiment, investors remained divided over whether to expect an increase in interest rates at the Federal Reserve when the central bank's policymakers meet next week.
While inflation has been tame, strong economic growth has produced rising production costs which could translate into higher prices. Higher Fed lending rates would help contain inflation by slowing consumer spending, but that could hurt company profits.
Those underlying issues were pushed aside today as traders repositioned their complex computer-driven investing strategies related to options and futures expirations.