U.S. stocks rose Tuesday ahead of Wednesday’s Federal Reserve decision: the Nasdaq gained 1.2%, the S&P 500 rose 0.6% and the Dow was roughly flat. Traders saw a 7% chance of a rate hike Wednesday and 83% odds of an increase in December.
U.S. stocks gained Tuesday as investors looked ahead to Wednesday’s Federal Reserve interest-rate decision. The Nasdaq Composite rose 1.2%, the S&P 500 added 0.6% and the Dow Jones Industrial Average was roughly flat.
The interest-rate-sensitive two-year Treasury yield edged higher, while the 10-year yield was flat at about 4.99%. Traders saw a 7% chance of a rate hike Wednesday and were pricing in 83% odds of an increase in December. Federal Reserve Chair Kevin Warsh’s comments on inflation were a key focus after consumer price pressures accelerated in September.
Technology was the S&P 500’s best-performing sector group, followed by consumer discretionary, while energy was the weakest. Stocks were supported by improving sentiment on artificial intelligence after concerns about the sector’s profitability and the durability of the AI trade drove a sharp selloff the previous week.
