US stock markets settled higher on Tuesday, though investors mostly held off on making big bets with the Federal Reserve engaged in a two-day policy meeting, which ends on Wednesday.

The Dow Jones Industrial Average rose 36.43 points or 0.17 percent to settle at 20,949.89. NASDAQ 100 index gained 14.44 points or 0.26 percent to close at 5,644.07. The broader S&P 500 index add 2.84 points or 0.12 percent to end at 2,391.17.