S&P 500 Closes Higher Tuesday as Investors Pile into Tech Sectors ahead of Federal Reserve decision
The S&P 500 closed higher Tuesday, as investors piled into beaten tech sectors ahead of the Federal Reserve decision on Wednesday.
Tech rose over 3% as the recent weakness in big tech and chip stocks appeared to entice dip-buying action.
Apple and Microsoft led the gains, with both up more than 2% and 3% respectively,.
Also helping tech, Treasury yields took a breather from their recent melt-up just as the Fed kicked off its two-day meeting.
Investor attention now focuses on the Fed’s summary of economic projections to gauge the shift in interest rate expectations for this year. Commentary on how the Fed is planning to tackle inflation will also be closely watched. If the central bank indicates that it favors a wait, this could stoke worries about whether the Fed is able to get inflation under control at a time when concerns about a recession are on the rise.
“I think the market will be disappointed if the Fed strikes a tone that we're going to raise rates by 25 basis points and then see how things go”, Dean Smith - chief strategist and portfolio manager at FolioBeyond's commented Tuesday.
As of Tuesday end, The S&P 500 rose 2.1%, the Dow Jones - 1.8%, while Nasdaq saw a 2.9% gain.
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