Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., January 23, 2017.

Brendan McDermid | Reuters

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., January 23, 2017.

Wall Street also got some hope that tax reform could still happen this year. Treasury Secretary Steven Mnuchin told CNBC on Tuesday that the administration would pass tax reform before 2018.

President Donald Trump, meanwhile, urged Congress to move forward with tax reform, saying on Twitter that “the biggest Tax Cut & Tax Reform package in the history of our country will soon begin. Move fast Congress!”

Tax reform hopes have been one of the main catalysts for the stock market since Trump’s election. In that period, the S&P 500’s market value has increased by more than $2 trillion.

But tax reform expectations have decreased since the election, as the administration has been bogged down by in-party fighting and a failed attempt at overhauling health care, among other factors.

“The mood [in the market] has been positively affected by the prospects of something good coming out” of the Trump administration, said Randy Warren, chief investment officer at Warren Financial. “But at the same time, there isn’t a big premium built into the market because of all the dysfunction in Washington.”

“However, if we can get some tax reform, that would be tremendous for the market,” Warren said.

In economic news, the U.S. Producer Price Index — a measurement of inflation — rose 0.2 percent in August, below the expected 0.3 percent increase. There are other major data set for release Wednesday.

Source