On Tuesday, New York’s stock markets ended on a high note, and the S&P 500 hit an unprecedented peak right before a key Federal Reserve meeting. This rise came after a rebound in the tech and finance sectors.
The S&P 500 climbed 0.56% to close at 5,178.51 points, a new record. This surge was driven by gains in tech (+0.64%) and finance (+0.48%).
Energy stocks also jumped (+1.08%), buoyed by rising oil prices. Meanwhile, the Dow Jones increased by 0.83% to 39,110.76 points, and the Nasdaq grew 0.39% to 16,166.79 points.
Early caution gave way to optimism, leading to gains before the Fed’s announcement.
As economists predicted, the Federal Reserve is likely to keep interest rates steady, between 5.25% and 5.50%, for the fifth time in a row.
The focus now shifts to the Fed’s statement and Chairman Jerome Powell’s subsequent press conference.
Analysts predict rate cuts may start in June, pending more data on inflation trends. Fitch, however, sees potential rate reductions starting in July due to ongoing core service inflation. A total of 75 basis points in cuts is expected in 2024.
Nvidia rebounded, closing up 1.07%, which helped alleviate some stress in the semiconductor sector.
Initially, its stock fell after unveiling the Blackwell B200 AI chip, which AJ Bell noted was already anticipated by the market.
Super Micro Computer fell 8.96% but recovered from an initial drop of over 12% after announcing a share sale to boost production capacity.
Navellier views this as a temporary setback for semiconductor stocks, emphasizing that AI’s momentum is still strong.
This article was produced by The Rio Times’ automated AI newsroom. Editorial responsibility: Matthias Camenzind, Publisher and Editor-in-Chief. The Rio Times also runs Ask Rio Times, which answers from 100,000+ of our own articles, the daily Latin America Power Map, and prediction-market odds on elections and markets.. How we use AI · Report an error
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