Tech Giants Lead Market Higher Ahead of Earnings and Fed Decision

The US stock market inched upward on Wednesday as investors awaited a busy week of earnings reports from the world’s largest technology companies. The Dow Jones Industrial Average rose 100 points, or 0.3%, to 35,012, while the S&P 500 index gained 17 points, or 0.4%, to 4,514. The Nasdaq Composite Index led the charge, rising 133 points, or 0.4%, to 14,662 as investors digested strong earnings from major tech firms. Apple Inc.’s latest fiscal quarter results were particularly noteworthy, with the company’s sales and profits exceeding expectations. Meanwhile, investors are keeping a close eye on Thursday’s Federal Reserve meeting, where policymakers are expected to discuss the possibility of interest rate hikes to combat inflation. A decision by the Fed could impact the market and influence the direction of tech stocks in the coming weeks. The yield on 10-year Treasury notes rose to 3.84%, from 3.78% late Wednesday. The US dollar index fell, making the euro and pound sterling more attractive as safe-haven currencies. In corporate news, Amazon.com Inc. is set to report its latest earnings on Thursday, while Microsoft Corp.’s fiscal fourth-quarter results are expected later in the day. investors are looking for signs that these companies will continue their strong growth trajectory in 2024. The market’s focus remains on the Big Tech sector, which has been a key driver of the overall rally. However, with inflation concerns still looming and interest rates on the horizon, investors are bracing themselves for potential volatility ahead.