U.S. Stocks Rise as Fed Meeting Begins
Stocks Climb Amid Fed Meeting Kickoff
U.S. stocks climbed on Tuesday, with energy stocks leading the charge as the Federal Reserve commenced its two-day meeting.
At 13:49 ET (18:49 GMT), the Dow Jones Industrial Average rose 254 points, the S&P 500 gained 0.4%, and the Nasdaq added 0.3%.
Fed Meeting and Rate Cut Concerns
The Federal Reserve’s meeting began on Tuesday, with expectations of unchanged rates. However, investors are cautious as the Fed may hint at fewer rate cuts this year due to recent high inflation data.
Recent data shows U.S. inflation exceeding the central bank’s target, raising concerns among investors.
Stifel mentioned on Tuesday that updated economic projections might indicate a reduced expectation for rate cuts compared to previous forecasts.
Technology Sector Highlights
Nvidia’s stock rose 1% after unveiling its latest AI chip at a technology conference, receiving positive feedback from Wall Street analysts.
Spire Global saw a 1% increase after partnering with Nvidia for AI-driven weather prediction. In contrast, Super Micro’s stock fell by 10% following a stock sale announcement.
Pfizer’s Stake Adjustments
Pfizer’s stock dropped 1% after selling a stake in Haleon. International Flavors & Fragrances’ stock rose by 0.4% post announcing the sale of its pharma solutions business.
Nordstrom Inc. surged over 10% amid reports of potential privatization discussions.
Energy Sector Performance
Energy stocks led the market, supported by rising oil prices nearing four-month highs. The Energy Information Administration is set to release crude stock estimates later this week.
Overall, market movements were influenced by the ongoing Fed meeting, tech sector developments, stake adjustments by major companies, and energy sector performance.
