Stocks close little changed as Dow pares gains, Street eyes Fed

U.S. stocks kicked off the new week with little change as Wall Street awaits Wednesday's key Federal Reserve decision on interest rates and reacted to a rise in the price of oil.

Stocks gave up early gains and the Dow Jones industrial average closed down 3.63, or less than 0.1%, to 18,120.17, after climbing as much as 131 points earlier. The broader Standard & Poor's 500 stock index was basically flat, falling 0.04 to 2139.12  and the Nasdaq composite dropped 9.54, or 0.2%, to 5235.03.

Market sentiment got an initial boost from the oil patch, where the price of a barrel of U.S.-produced crude rose 31 cents, or 0.7%, to $43.34, but off highs for the day.

A weaker dollar also was giving the broad market a lift, as it helps sales and profitability of U.S. companies that do a lot of business abroad. Oil also benefits from a weaker dollar as it makes it more affordable.

As economy struggles to regain its mojo, Fed seen standing pat on rates

Central banks are the big focus this week. On Wednesday, the Fed breaks from a two-day meeting and global investors will find out if the Fed again holds off on raising rates, or whether it goes off script and surprises the market with its first hike of 2016. Currently, traders are pricing in just 15% of odds of a September rate hike, according to CME Group, down from roughly 35% at the end of August. The probability of a rate hike at the Fed's December meeting is now around 55%.

Investors will also be watching a key meeting Wednesday at the Bank of Japan. The BoJ is battling with low inflation and a slow-growing economy and could stand pat or opt to boost stimulus once again in the form of more asset purchases or drop interest rates lower into negtive territory.

Stocks were trending higher around the globe. The broad Stoxx Europe 600 was up 1%. And stocks rose in Asia as well, with Japan's Nikkei 225 rising 0.7% and Hong Kong's Hang Seng index rising 0.9%.