Anticipated Tech Earnings Boost US Stock Market
US stocks are on the rise in anticipation of the quarterly earnings reports from major tech companies, Microsoft Corporation (NASDAQ: MSFT) and Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG). These reports are expected to provide insight into business expenditure on big technology. As of 11:12 ET (15:12 GMT), the Dow Jones Industrial Average was relatively flat, showing an increase of 4 points, while the S&P 500 and the NASDAQ Composite were up 0.1% and 0.4% respectively.
AI and Fed Rate Hopes Push Tech Stocks Higher
Market optimism in the tech sector is largely being fueled by the strong performances expected in the cloud businesses of these tech giants. Beyond the cloud, analysts are eager to see signs of improvement in digital advertising and potential insights into AI spending and strategy. The promise of AI technology as the next big transformative trend in the sector has driven the Nasdaq up by 34% this year. There's also a boost from the expectation that the Federal Reserve's series of interest rate hikes is nearing its end, even though another quarter of a percentage point increase is anticipated after its two-day meeting concludes tomorrow.
Investors Watch Fed's Two-Day Meeting
All eyes are on Fed Chair Jerome Powell as he holds a press conference tomorrow. Investors will be keen to pick up clues about the Fed's next rate move later in the year. There is division among futures traders on whether the Fed will halt its rate hikes after this month or go for another quarter-point increase in one of its fall meetings.
Positive Economic Indicators and Stock Movements
In a positive turn, consumer confidence soared to 117, which surpassed the expected 111.8 and outdid the previous reading of 110.1. This week will also see reports on the gross domestic product for the second quarter, initial jobless claims, and the personal consumption expenditures index, a critical inflation indicator.
General Electric and Other Companies Raise Profit Outlook
In Tuesday's stock movements, General Electric Company (NYSE: GE) saw a 5.9% rise after increasing its adjusted profit outlook, owing to the predicted demand from airlines for engine parts and other services. Meanwhile, shares of Verizon Communications Inc (NYSE: VZ) rose 0.8% after reporting a greater-than-expected increase in wireless subscriber numbers due to device upgrades. Additionally, 3M Company (NYSE: MMM) shares witnessed a 5.4% rise after it uplifted its annual adjusted profit forecast.