The Dow Jones Industrial Average rose 66.22 points, or 0.17 percent, to 39,872.99. The S&P 500 added 13.28 points, or 0.25 percent, to 5,321.41, hitting a record high. The Nasdaq Composite Index increased by 37.75 points, or 0.22 percent, to 16,832.62, with another consecutive record close.
Seven of the 11 primary S&P 500 sectors ended in green, with utilities and consumer staples leading the gainers by going up 0.97 percent and 0.60 percent, respectively. Meanwhile, energy and industrials led the laggards by dropping 0.51 percent and 0.33 percent, respectively.
Investors have been closely monitoring speeches from Federal Reserve officials, as a lack of economic data has left the rate-cut debate without much new information.
Federal Reserve Bank of New York President John Williams welcomed the softer consumer inflation data on Tuesday but stated that this positive news is not sufficient to warrant an interest rate cut anytime soon. Monetary policy is "restrictive" and "is in a good place," he said.
"I don't see any indicators now telling me ... there's a reason to change the stance of monetary policy now, and I don't expect that, I don't expect to get that greater confidence that we need to see the inflation progress towards a 2 percent goal in the very near term," said Williams.
Atlanta Federal Reserve President Raphael Bostic also remarked on Tuesday that the restrictive monetary policy is impacting rate-sensitive sectors and delaying investment. He expects inflation to decline gradually and does not foresee a rate cut before the fourth quarter.
On the corporate front, Lowe's sales dropped less than anticipated as financially constrained Americans continued spending on small repairs. Macy's shares rose after the department store chain surpassed modest earnings expectations, while Tesla stock popped 6.66 percent after the company unveiled new details on its plan to develop electric semi trucks.
Nvidia earnings are expected after the close on Wednesday. Given the chip giant's role in the AI rally over the past year, and its large weighting in the S&P 500, the release is expected to have wide implications for the broader market.
Latest comments