NEW YORK (AP) — U.S. stock indexes rose again Tuesday, setting another record after another period of quiet trading.
The S&P 500 rose 13.28 points, or 0.3%, to 5,321.41, surpassing the all-time high it set last week. The Nasdaq Composite added 37.75 points, or 0.2%, to 16,832.62, a day after hitting a record high. The Dow Jones Industrial Average rose 66.22 points, or 0.2%, to 39,872.99, just off last week’s high.
The index has recently risen to a record high, driven mainly by hopes that the Federal Reserve will cut interest rates this year amid hopes of calming inflation, and was also boosted by a growing number of reports showing big U.S. companies posting better-than-expected profits.
Macy’s joined the chorus of companies whose latest quarterly profits beat analysts’ expectations, sending the company’s stock up 5.1% after some early volatility. The company, which also operates Bloomingdale’s in addition to its namesake store, raised the lower bounds on its future sales and profit forecasts.
Lam Research also helped support the market after suppliers to the semiconductor industry announced stock buyback programs worth up to $10 billion. The company said it will conduct a 10-for-1 stock split to lower the price of each share and make it more affordable to more investors. The company’s stock price rose 2.3%.
That helped offset a 3.7% decline at Palo Alto Networks Inc. The cybersecurity company delivered a better-than-expected earnings report but also provided a revenue forecast range for the current quarter, the midpoint of which was slightly below analysts’ expectations.
Trump Media & Technology Group, which operates the Donald Trump Truth social network, fell 8.7% after it disclosed a net loss of $327.6 million in its first quarterly report as a publicly traded company.
Lowe’s fell 1.9% despite reporting better latest quarterly results than analysts had feared. It said it was maintaining its sales forecast for this year, including a decline of up to 3% in key underlying sales as high interest rates constrain customer activity.
Interest rates on mortgages, credit cards and other payments are rising as the Federal Reserve keeps key interest rates at the highest levels in more than 20 years. The government is trying to walk the tightrope of squeezing the economy through high interest rates high enough to quell high inflation, but not so high as to cause a painful recession.
After a gloomy start to the year, an encouraging report released last week showing that inflation may finally be heading back in the right direction has raised hopes that such a “soft landing” for the economy may be possible. Ta. There were also growing expectations that the US Federal Reserve (Fed) would cut its key interest rates once or twice this year.
A senior Federal Reserve official, Christopher Waller, said in a speech on Tuesday that he expected economic data to moderate following recently released weaker-than-expected reports on U.S. retail sales and strength in the U.S. services sector. He said there was. This will in turn put downward pressure on inflation.
But he said that unless the labor market weakens significantly by then, “we would need to see good inflation data for a few more months before we feel comfortable supporting an accommodative monetary policy stance.”
Expectations of future interest rate cuts led to lower U.S. Treasury yields, easing pressure on the stock market. The yield on the 10-year U.S. Treasury note fell to 4.41% from 4.48% late Monday. The yield on the two-year Treasury note, which more accurately reflects expectations for Fed policy, fell to 4.83% from 4.85%.
There haven’t been many strong economic reports this week, and the biggest potential for a market rally will be upcoming earnings reports.
This week’s headliner is Nvidia, whose stock price has soared amid excitement over its artificial intelligence technology. The company is scheduled to release its latest quarterly results on Wednesday, and expectations are high.
Target reported Thursday, followed by Ross Stores on Wednesday, which could provide more details on how U.S. household spending is holding up. With inflation remaining high, pressures on customers are growing, with lower-income customers appearing to be the most affected.
In overseas stock markets, indexes fell in most of Europe and Asia.
Stocks fell 2.1% in Hong Kong and 0.4% in Shanghai after S&P Global Market Intelligence raised its forecast for China’s economic growth rate this year to 4.8% from 4.7% in April. , emphasized that he was not overly optimistic.
“The overall outlook for a gradual economic recovery remains unchanged, with the economy expanding supported by stronger policy stimulus, stronger external demand and gradually improving private sector confidence,” the report said. .
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AP Business Writers Yuri Kageyama and Matt Ott contributed.
Stan Cho, Associated Press
