The S&P 500 reached a new record high on Tuesday as investors eagerly awaited the Federal Reserve’s decision on interest rates. The benchmark index rose 0.6% to 5,178.51, surpassing its previous all-time high set just last week. The Dow Jones Industrial Average also saw a significant jump of 0.8%, reaching 39,110.76, while the Nasdaq composite gained 0.4% to 16,166.79.
One of the standout performers of the day was International Paper, which saw an 11% increase in its stock price after announcing Andrew Silvernail as its new CEO. Unilever also made headlines by revealing plans to spin off Ben & Jerry’s and its ice cream business, along with cutting 7,500 jobs, leading to a 2.8% increase in its US-traded shares.
Nvidia experienced a rollercoaster day, initially weighing down the market before bouncing back with a 1.1% gain. The company unveiled new products at its developers’ conference, solidifying its position as a leader in artificial intelligence technology.
On the flip side, Super Micro Computer faced a 9% decline after announcing plans to sell 2 million shares of its stock. The company had seen a meteoric rise in its stock price over the past year, but recent developments led to a sharp drop.
All eyes are now on the Federal Reserve, which is set to announce its decision on interest rates on Wednesday. Expectations are for the Fed to maintain its current interest rate, but recent reports of higher-than-expected inflation could lead to a shift in policy. Analysts are closely watching for any indications of future rate cuts, which have been a driving force behind the recent record highs in the stock market.
In the bond market, Treasury yields eased ahead of the Fed’s announcement, with the 10-year Treasury yield slipping to 4.29%. High yields and interest rates can impact stock prices and market sentiment, so investors are closely monitoring any changes in Fed policy.
Overall, the stock market remains volatile, with Bitcoin’s price also experiencing fluctuations. In international markets, Japan’s Nikkei 225 rose after the Bank of Japan raised its benchmark interest rate for the first time in 17 years. However, stocks in Hong Kong and Shanghai fell after China Evergrande Group was fined for alleged violations.
As investors brace for the Fed’s decision, the stock market continues to be influenced by a mix of economic data and corporate news. Stay tuned for updates as the market reacts to the latest developments.
