New York (AP) — Wall Street’s share price rose on Tuesday afternoon trading as investors waited for the Federal Reserve’s decision on interest rates on Wednesday.
The S & P 500 rose 0.4% at 2:51 pm in the east. The Dow Jones Industrial Average rose 46 points (0.1%) to 33,107, while the Nasdaq rose 0.1%. The index temporarily fell into the red early in the day, reflecting volatile trading.
Energy stocks showed a solid rise following promising earnings reports from several oil and gas companies. BP soared 7.5% after reporting the highest quarterly profits in more than a decade, thanks to soaring oil and gas prices. Devon Energy rose 8.6% and Diamondback Energy rose 6.1% after reporting good performance.
After a mixed morning, tech stocks continued to rise slightly. Many companies in this sector have high stock prices, which has the power to raise or lower major indexes. Apple rose 0.6%.
The May index got off to a positive start after the brutal April, with a gradual rise following a midnight rebound on Monday.
Zack Hill, Head of Portfolio Management at Horizon Investments, said:
The main focus of Wall Street over the next few days Federal Reserve System.. The central bank will meet on Tuesday and issue a statement on Wednesday. Investors expect to double the benchmark rate this week to intensify the fight against inflation, the highest level in 40 years. We have already raised the major night rates once. This is the first increase since 2018, and Wall Street expects some significant increases in the coming months.
The Fed’s aggressive shift to raise interest rates is coming as rising inflation puts more pressure on businesses and consumers. As the cost of energy and other commodities increased, many companies raised prices and made cautious predictions for investors. Wall Street and economists are concerned that rising prices in everything from food to gas and clothing will help slow consumer spending and weigh on economic growth.
Bond yields have eased. Yields on 10-year Treasuries fell from 2.99% on Monday to 2.96%. Treasury yields are generally rising all year round as investors prepare for higher interest rates, which makes borrowing more expensive.
Investors are scrutinizing the latest corporate profits to get more details on how inflation affects business and consumer activity.
Household goods giant Clorox rose 2.2% after reporting strong quarterly profits, but higher costs also lowered its annual profit forecast. Starbucks will report the results later on Tuesday. CVS Health will report its financial results on Wednesday.
Investors were initially slow to recover from the pandemic, but have some updates on the stronger and growing labor market.The Bureau of Labor Statistics reported on Tuesday that employers posted a record 11.5 million. Job offer In March, the United States, everyone unemployed has two unprecedented jobs.
According to FactSet, on Friday the Ministry of Labor will report that the economy created an additional 396,000 new jobs in April. This shows that more than 400,000 people have been hired for the unprecedented 12 months in a row.
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Wall Street shares are rising ahead of the Federal Reserve’s interest rate decision | Associated Press
Source link Wall Street shares are rising ahead of the Federal Reserve’s interest rate decision | Associated Press