- US stocks were mixed on Tuesday as the Fed kicked off its two-day policy meeting.
- Investors are widely expecting the central bank to raise interest rates by 25 basis points.
US stocks traded mixed on Tuesday morning as investors prepared for a week of Big Tech earnings, while gearing for the start of the Federal Reserve's July meeting.
The Dow Jones Industrial Average risked breaking an 11-day winning streak.
Alphabet and Microsoft are scheduled to report results after the closing bell, while Meta will follow on Wednesday. Investors are eagerly looking for signs that this year's rally in the stock market can continue, and will be looking for strong guidance particularly from tech on continued enthusiasm for artificial intelligence.
The Fed on on Wednesday will wrap up its July meeting of the Federal Open Market Committee, which will determine the path of interest rates. A strong majority of investors expect that the central bank will raise rates by 25 basis-points, with most also believing that this will mark the final hike of the cycle.
That's as a soft landing narrative has gained momentum, helping the Dow Jones Industrial Average score its 11th straight winning session on Monday.
Here's where US indexes stood shortly after the 9:30 a.m. ET opening bell on Tuesday:
- S&P 500: 4,555.44, up 0.03%
- Dow Jones Industrial Average: 35,384.65, down 0.08% (26.59 points)
- Nasdaq Composite: 14,107.11, up 0.36%
Here's what else is happening this morning:
- Former Microsoft CEO Steve Ballmer is richer than other ultra-rich peers including Warren Buffett thanks to AI hype and a contract quirk.
- Low market volatility has shaken trading options for Ken Griffin's Citadel Securities, which marked a 35% plunge in revenue.
- Giving up Twitter's iconic bird logo for the 'X' is a risky move, Wedbush Securities' Dan Ives said.
- Nvidia could generate $300 billion in AI-linked revenue by 2027, Mizuho's Vijay Rakesh said.
- Morgan Stanley says it was wrong to write off stocks, but warns falling inflation is a risk to corporate profits.
In commodities, bonds and crypto:
- West Texas Intermediate crude oil dropped 0.25% to $78.53 per barrel. Brent crude, oil's international benchmark, fell 0.23% to $82.51.
- Gold dipped to $1958.40 per ounce.
- The yield on the 10-year Treasury climbed six basis points to 3.92%.
- Bitcoin edged lower to $29,182.