Wall Street Closes Mostly Higher as Apple Losses After Launch Event
U.S. stocks rose on Tuesday as investors hoped the Federal Reserve would stick with its supportive policy stance as the central bank’s two-day meeting got underway.
The market’s rise was limited as Apple Inc’s shares lost early gains following its roll-out of a new virtual fitness service and a bundle of all its subscriptions, Apple One.
The S&P 500 technology index was still up 1% and the Nasdaq outperformed the other two major indices, extending its recovery from a brutal sell-off earlier this month that had halted a Wall Street rally.
“The pullback we had is now behind us” probably, said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
“While the economy is slowing, the upcoming macro news should be friendly, which should indicate the Fed will have no change in terms of policy,” he said.
In its first policy meeting since Fed Chair Jerome Powell announced a more accommodative stance on inflation, the central bank could switch its Treasury purchases toward more long-dated debt to keep long-term yields low, some strategists said.
Data on Tuesday showed U.S. factory output increased strongly in August. Separately, U.S. import prices increased more than expected for the same month, supporting the view that inflation pressures were building up.
The Dow Jones Industrial Average rose 82.51 points, or 0.29%, to 28,075.84, the S&P 500 gained 24.6 points, or 0.73%, to 3,408.14 and the Nasdaq Composite added 153.85 points, or 1.39%, to 11,210.50.
Earlier in the day data showed China’s industrial output accelerated the most in eight months in August.
Citigroup Inc dropped 4.3% following a report that federal regulators were preparing to reprimand the U.S. lender for failing to improve its risk-management systems.
JPMorgan Chase & Co slipped 2.4% as it lowered its full-year net interest income forecast.
Advancing issues outnumbered declining ones on the NYSE by a 1.92-to-1 ratio; on Nasdaq, a 1.72-to-1 ratio favored advancers.
The S&P 500 posted 21 new 52-week highs and no new lows; the Nasdaq Composite recorded 63 new highs and 15 new lows. (Additional reporting by Medha Singh and Devik Jain in Bengaluru; Editing by Shounak Dasgupta and David Gregorio)