U.S. stocks rose for the second straight session amid growing optimism about upcoming earnings reports from so-called artificial-intelligence hyperscalers.
The broad S&P 500 rose 45.83 points, or 0.60%, to 7722.60 and the tech-heavy Nasdaq Composite gained 308.43 points, or 1.18%, to 26477.81. The Dow Jones Industrial Average edged up 15.99 points, or 0.03%, to 52377.57.
Treasury yields rose as traders awaited the Federal Reserve's policy decision Wednesday. The central bank is widely expected to hold rates steady, but hotter-than-anticipated readings of inflation in recent weeks suggest an increase remains possible.
The yield on the policy-sensitive two-year Treasury rose 0.026 percentage point to 4.735%. The yield on the 10-year Treasury note added 0.004 percentage point to 4.992% and the yield on the 30-year bond rose 0.004 percentage point to 5.304%.
The U.S. dollar rose sharply in anticipation of a hawkish statement from the Fed.
"Hiking probabilities took a leg down when tech-sector credit seemed to be under pressure," said strategists at British brokerage Standard Chartered Global Research, in a note to clients. "But tech and AI have rebounded, so downside financial-market risks are now less pronounced."
The Standard Chartered strategists estimated there was a roughly one-in-four chance that the Fed would surprise markets with a rate hike on Wednesday.
Gold futures rose $36.50, or 0.9%, to $4058.80 a troy ounce.
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