Tech stocks recovered losses made yesterday as the Dow closed up +0.41% to 21,328.47 and S&P 500 moved up +9.35 points to 2,438.74.
Financials and energy also made gains. Market focus shifted to the Federal Reserve meeting which is underway and will wrap up on Wednesday when fed-funds rate are expected by market commentators to be lifted.
- Dow 21,328.47 +0.44%
- S&P 500 2,440.35 +0.45%
- NASDAQ 6,220.37 +0.73%
- Russell 2000 1,425.98 -0.48%
- NYSE Composite 11,796.80 +0.43%
- Gold 1,268.70 +0.01%
- Oil WTI $46.53 +0.15%
- 10-year yield 2.21% -0.01%
Looking ahead: Fed rate rise?
Investors were buoyed at the prospect of a lift from an expected Fed rate hike. The central bank is seen to be cautious in its approach to monetary policy so as not to stifle growth.
Although data has been soft with low inflation and lower-than-expected growth in the first quarter; economists' view is for the Fed to stay the course as inflation is assumed to rise further and the economy to stay strong.
A rate hike could put the benchmark rate to between 1% and 1.25%
In other news, tech stock revelry returns as Amazon, +0.11%, Alphabet (Google's parent company, +0.09% and Facebook, +1.51% all recover from a two-day purge as investors shedded shares.
On Nasdaq, other tech stocks such as packaged software company, 2U Inc also rose +2.31% and 8x8 up +2.79%.
Energy stocks on S&P 500, Chesapeake Energy saw a change of +4.35% and Range Resources, +3.37%.
Decliners across the broad index were Darden Restaurants, owners of several full-service restaurants including the Olive Garden and Longhorn Steakhouse, fell -2.09%. Yahoo! dropped -2.11% as did entertainment company, Twenty-First Century Fox, sliding -2.37%.
On the political screen, Attorney General's Jeff Sessions' robust appearance before the Senate Intelligence Committee took centre stage on the Hill.
Sessions was accused of 'stonewalling' panel members by not answering questions about conversations between him and Trump.
Sessions vigourously defended allegations that he met with Russians to discuss the campaign for the president. Allegations he called 'scurrilous and false'.