Wall Street's jittery month came to an end on Tuesday, with the S&P 500 rising but still recording its longest monthly decline since the pandemic began. After the Bank of Japan made only minor changes to its policy settings, the dollar rose while the yen fell to a 33-year low.

Traders took the latest economic data in stride on the eve of the Federal Reserve decision. The S&P 500 finished near 4,200. JPMorgan led a big bank rally. Tesla recovered, while Nvidia fell by about 1%. Caterpillar and JetBlue Airways fell as their earnings indicated a slowing in demand.

On the economic front, consumer confidence in the United States fell to a five-month low in October, while employment costs unexpectedly increased in the third quarter, highlighting a strong labour market that risks keeping inflation above the Fed's target.

Aside from the highly anticipated Fed decision, bond traders anticipate the US Treasury will announce another round of increases to its note and bond auctions this week, though a sizable minority believes the department will slow the pace of growth in order to avoid jolting yields higher.