S&P 500 Hits Fresh Record With Fed Decision, Big Tech Earnings Bonanza on Deck

Stocks

Summary:

The tech-heavy Nasdaq Composite (^IXIC) led the way up with a gain of nearly 1%, while the S&P 500 (^GSPC) rose 0.4% to notch a fresh all-time high.

US stocks mostly rose Tuesday, with the S&P 500 (^GSPC) hitting at a fresh record as optimism around tech offset mounting political concerns ahead of megacap earnings and a Federal Reserve rate decision.

The tech-heavy Nasdaq Composite (^IXIC) led the way up with a gain of nearly 1%, while the S&P 500 (^GSPC) rose 0.4% to notch a fresh all-time high. Meanwhile, the Dow Jones Industrial Average (^DJI) shed roughly 0.8%, weighed down by a slide in UnitedHealth (UNH) shares.

The S&P 500 notched its latest record as upbeat news from memory chipmakers helped lift optimism for tech on the eve of key megacap earnings reports. "Magnificent Seven" members Meta (META), Microsoft (MSFT), and Tesla (TSLA) are set to release results on Wednesday, followed by Apple (AAPL) on Thursday.

But the Dow retreated sharply as heavyweight UnitedHealth's shares plunged roughly 20%, despite posting a quarterly profit beat before the bell. Health insurer stocks tumbled after the Trump administration's proposal for Medicare payment rates next year failed to deliver the expected hike.

Trade drama also gripped markets, schooled by the Greenland crisis to stay alert even with a packed earnings roster and the Federal Reserve meeting on deck. After almost two decades of stop-and-go trade talks, the EU said it had clinched the "mother of all deals" with India, seen as a rebuff to President Trump's aggressive tariffs.

Meanwhile on Tuesday, a reading of consumer confidence dropped to its lowest level since 2014, falling below levels recorded in the depths of the pandemic as Americans face the price effects of an on-again, off-again tariff war and widespread uncertainty over the direction of trade policy.

The more pessimistic view of the economy comes as the Federal Reserve started its two-day meeting, which will bring its first policy decision of the year. While it is widely expected to hold the benchmark interest rate steady on Wednesday, markets are watching for signals on the timing of future rate cuts.

Meanwhile, a potential government shutdown is looming as Senate Democrats attempt to block a bill funding the Department of Homeland Security. The political pushback follows the fatal shooting by federal agents of Alex Pretti in Minneapolis.

Source: Yahoo Finance

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S&P 500 Hits Fresh Record With Fed Decision, Big Tech Earnings Bonanza on Deck

Source: Yahoo Finance

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