- The S&P 500 and Nasdaq hit new highs on Tuesday as investors prepared for the Fed’s policy decision.
- The market is also awaiting CPI data on Wednesday.
- Apple shares rose as much as 7% as Wall Street welcomed the WWDC event.
U.S. stocks were mostly higher on Tuesday, with the S&P 500 and Nasdaq hitting all-time highs as traders awaited the Federal Reserve’s latest policy decision.
When the central bank’s two-day meeting concludes on Wednesday, investors will hear from Chairman Jerome Powell to find out more about interest rate movements. No changes to monetary policy are expected at the meeting, but hopes remain high that interest rate cuts will begin in September.
Wednesday’s Consumer Price Index report will also help decide this, as a weaker-than-expected inflation reading could lead to a more dovish stance from the Fed.
“The consensus forecast is for headline CPI (which includes food and energy) to remain steady at 3.4% in May, unchanged from the April update. If that happens, it will be below the recent high of 3.7% in September and October but well above the 3% recorded in July last year and well above the Fed’s own target of 2%. If recent history is any guide, there should be widespread comfort even if the CPI turns out to be in line with expectations,” said David Morrison, senior market analyst at Trade Nation.
Apple shares soared to an all-time high on Tuesday, buoyed by anticipation of the WWDC event. The company announced developments that were met with wild cheers on Wall Street, sending the stock up as much as 7%.
Meanwhile, strong demand in the 10-year note auction pushed Treasury yields down nearly 7 basis points.
U.S. stock indexes as of the close of trading at 4 p.m. on Tuesday were as follows:
Here’s something else that happened today:
Commodities, Bonds and Cryptocurrencies:
- West Texas Intermediate crude was little changed at $77.87 a barrel, while the international benchmark Brent crude rose 0.31% to $81.85 a barrel.
- Gold rose 0.13% to $2,313.95 per ounce.
- The yield on the 10-year Treasury note fell 7 basis points to 4.4%.
- Bitcoin fell 3.3% to $67,166.
