Wall Street was little changed on Tuesday as an interest hike by China weighed on energy shares and major indexes faced resistance near 2 1/2-year highs.
The S&P, which topped resistance at 1,313, faced a new hurdle around 1,325, with near-term support at 1,300 and 1,295.
The index reached its highest 2 1/2 years on Monday after three consecutive sessions of gains.
In the latest move to battle inflation, China's central bank raised interest rates by 25 basis points, its second increase in six weeks.
The S&P energy index <.GSPE> fell 1 percent to be the worst-performing sector on the index.
We need a breather at this point for a healthier market, said Randall Warren, president at Warren Financial Service in Philadelphia.
China is weighing on commodity prices and commodity stocks, but it's not weighing so much on the entire market, suggesting Wall Street has the momentum to move higher, Warren said.
The Dow Jones industrial average <.DJI> was up 30.39 points, or 0.25 percent, at 12,192.02. The Standard & Poor's 500 Index <.SPX> was up 1.43 points, or 0.11 percent, at 1,320.48. The Nasdaq Composite Index <.IXIC> was down 1.62 points, or 0.06 percent, at 2,782.37.
The Dow was being supported McDonald's Corp
Merger activity continued for a second day with Kindred Healthcare Inc's
Kindred Healthcare jumped 24.6 percent to $24.28 and RehabCare soared 44.2 percent to $36.73.
But Teva Pharmaceutical Industries'
(Reporting by Angela Moon; Editing by Kenneth Barry)