AI wave lifts all boats
SPY•A tech-led rally lifted U.S. stocks on Tuesday, with the Nasdaq up 1.2%, the S&P 500 up 0.6% and the Dow little changed. Lower oil prices and a steady bond market also supported trading as investors awaited the Federal Reserve’s decision and earnings from major technology companies.
1. Tech shares lead gains
U.S. stocks rose on Tuesday as investors returned to AI optimism. The technology sector gained 1.5%, while the chip index rose 3.6%; Dell and Super Micro Computer each climbed 7.5%. Oil fell about 1.7%, with WTI below $100.
2. Big Tech earnings ahead
Microsoft and Alphabet are due to report third-quarter results after Wednesday’s market close, followed by Amazon on Thursday. Investors are focused on cloud growth and how quickly large capital spending plans translate into profit. The three companies have nearly $1.7 trillion in combined backlog and plan to spend as much as $600 billion this year.
3. Fed and Brazil in focus
Interest-rate futures put a 90% probability on the Fed holding rates on Wednesday. In Brazil, the Bovespa closed lower after Monday’s 14% plunge, while the real rebounded about 1%. The article said global markets showed little spillover from Monday’s Brazilian selloff.
