Stocks Tick up ahead of Federal Reserve Meeting
Stock indices are bullish for Wednesday as the next FOMC meeting is scheduled for later in the day and tech stocks perform better.
Quick overview
- Stock market indices rose on Tuesday and continued to climb on Wednesday ahead of the FOMC meeting.
- The Nasdaq increased by 1.16%, the Dow by 0.55%, and the S&P 500 by 0.77%, indicating a bullish market sentiment.
- Tech stocks, particularly Palantir and Nvidia, showed positive movement after strong earnings reports and partnerships.
- Upcoming economic indicators, including the Personal Consumption Expenditures index, may further influence market momentum.
Stock market indices rose on Tuesday by the time trading closed off, and they jumped on Wednesday morning as the market opened and prepared for the latest FOMC meeting.
The Federal Reserve will be holding its January meeting on Wednesday, and the market is bullish ahead of that meeting. The Nasdaq climbed 1.16% while the Dow gained 0.55%. The S&P 500 increased by 0.77% as well, rounding out the top three stock indices for the U.S. market.
Stock futures remained positive at the time of writing and are pointing toward positive consumer sentiment over the FOMC meeting and the state of the economy. Recent inflation data was promising and came in better than expected for the jobs market and the consumer price index.
Tech Companies Catch a Break
After days of bearish movement for many technology stocks, there is positive movement on the stock indices for a number of them. Palantir Technologies (PLTR) is out in front with a 5.13% increase after a strong Q4 earnings report. Microsoft (MSFT) has caught a break after several rough weeks, with a 0.72% increase for Wednesday.
Nvidia (NVDA) is another strong performer today, with 2.42% in gains after signing a deal with Meta Platforms to provide them with millions of AI chips. The company is enjoying excellent stock movement just a week out from its quarterly earnings report that will be key to determining where investor sentiment lies with AI companies.
Technology companies are still under severe scrutiny as they need to prove to shareholders that they can be profitable despite major investments into AI technology. Nvidia’s earnings next week will likely be crucial, but the easing off that is taking place this week is promising for the tech sector. Apple (AAPL) gained 0.66% on Wednesday, and Advanced Micro Devices (AMD) fell 1.41%, indicating that the entire AI sector is not bullish just yet.
Later this week, the Personal Consumption Expenditures index will release, indicating where inflation might be headed. That could work together with the FOMC meeting outcome to give the market a lot of momentum heading into next week.
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