Stock Markets Briefly Rise Amid Federal Reserve Anticipation and Tech Earnings

The Dow and S&P 500 saw minor gains on Tuesday, bolstered by financial stocks as investors awaited the Federal Reserve's policy decision and Big Tech earnings. Microsoft, Apple, and other tech giants experienced modest rises, though Nvidia's drop impacted the Nasdaq. Upcoming AI investments and job data are key focuses.

The blue-chip Dow and the benchmark S&P 500 inched upwards on Tuesday, buoyed by financial stocks in anticipation of a key policy decision from the Federal Reserve this week. Investors are also eyeing Big Tech results, which will offer insights into the economic landscape.

Microsoft, a leading figure in artificial intelligence, is set to release its quarterly earnings after market close. Its stock rose 0.2%, while other tech giants like Apple, Amazon.com, Meta, and Alphabet saw increases between 0.3% and 0.6%. However, a 1.0% drop in Nvidia shares curtailed gains on the tech-heavy Nasdaq.

At 10:10 a.m. ET, the Dow Jones Industrial Average rose by 139.83 points, or 0.34%, to reach 40,679.76. The S&P 500 was up 8.89 points, or 0.16%, at 5,472.43, and the Nasdaq Composite fell 4.29 points, or 0.02%, to 17,365.91. Financial stocks led gains within the S&P 500 sectors, climbing 1.2%, as a banking index rose 1.5%.

Following disappointing results from Tesla and higher expenditure forecasts from Alphabet, the market saw a broad sell-off last week. Investors are keenly observing whether these tech behemoths can sustain AI-driven growth.

Hopes are high for the Federal Reserve to signal an interest-rate cut, bolstered by easing inflation and a softer jobs market. Odds for a 25-basis-point cut stand at 89.6% as the Fed prepares to announce its policy decision on Wednesday, according to CME's FedWatch Tool.

Consumer Staples took a hit, with Procter & Gamble and Merck suffering losses. Meanwhile, Cybersecurity firm F5 jumped 11.2% on positive forecasts, contrasting with Symbotic's 19.8% slump.

(With inputs from agencies.)