U.S. Stocks Add to Gains Ahead of Earnings, Fed Statement

Dow Jones04:11
 
 

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.

 
 

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment