Dow notches 12th straight win as US stocks rally ahead of Fed policy decision
- Stock rose on Tuesday ahead of earnings reports from Alphabet and Microsoft.
- Investors are also preparing for another possible rate hike from the Fed on Wednesday.
US stocks climbed on Tuesday amid investors' anticipation for upcoming earnings reports from Alphabet and Microsoft and ahead of a key decision on interest rates from the Federal Reserve on Wednesday.
Tuesday marked the start of the Fed's two-day meeting, which will determine the direction of future monetary policy. Though majority of market observers expect another interest rate hike for July, some view this as a potential conclusion to the bank's tightening cycle. If it raises rates tomorrow, it will market the 11th hike since March 2022, and would bring the federal funds rate to a range of 5.25%-.5.50%
Tuesday also highlighted strong confidence in the economy, with the Conference Board's consumer confidence index hitting its highest since July 2021. In July, it rose 117 points, with more Americans feeling "good" about family finances.
Here's where US indexes stood at the 4:30 a.m. ET opening bell on Tuesday:
- S&P 500: 4,567.46, up 0.28%
- Dow Jones Industrial Average: 35,438.07, up 0.08% (26.83 points)
- Nasdaq Composite: 14,144.56, up 0.61%
Here's what else is happening this morning:
- Fundstrat's Tom Lee says the AI bubble hasn't yet formed for three reasons.
- The Dow Jones is going through its winning longest streak since 2017. It's another no-recession sign.
- Chatham House warns the climate crisis is the next big shock to hit markets.
- Ed Yardeni thinks markets are entering a 'roaring 2020s,' thanks to AI, robotics and quantum computing.
In commodities, bonds and crypto:
- West Texas Intermediate crude oil climbed 1%% to $79.60 per barrel. Brent crude, oil's international benchmark, rose 1% to $83.59.
- Gold inched up 0.2% to $1,965.50 per ounce.
- The yield on the 10-year Treasury rose up three basis points to 3.89%.
- Bitcoin dropped 0.27% to $29,134.78.