U.S. stocks looked set for a flat start on Tuesday, pausing after a rebound in the previous session and with the U.S. Federal Reserve meeting in focus.

The Federal Open Market Committee is expected to leave interest rates unchanged at 5.25% at its meeting, but investors will pay special attention to the accompanying statement, expected around 14:15 ET.

The U.S. Labor Department also releases preliminary second-quarter productivity and unit labour costs.

On Monday, U.S. stocks rallied as investors snapped up beaten-down shares of financial companies.

Bear Stearns gained 5%, Wells Fargo rose 5.9% and Merrill Lynch advanced 6.4% in NYSE trading.

The Dow Jones industrial average had its biggest daily percentage advance since June 2003 on Monday, while the S&P 500 turned in its best one-day performance since April 2003.

The Dow jumped 286.87 points, or 2.18% to 13,468.78, the S&P climbed 2.42% to 1,467.67, and Nasdaq composite index advanced 1.44% to 2,547.33.