Posted on January 10, 2023, 10:34 pm
by Caroline Valetkevic
NEW YORK, Jan 10 (Reuters) – The New York Stock Exchange closed higher on Tuesday on gains from big tech stocks, amid relief after US Federal Reserve (Fed) head Jerome Powell abstained during a speech from commenting on interest rate policy.
The Dow Jones Industrial Average gained 0.56%, or 186.45 points, to 33,704.10 points.
The broader S&P-500 gained 27.16 points, or 0.70%, to 3,919.25 points.
The Nasdaq Composite for its part advanced 106.98 points (1.01%) to 10,742.63 points.
In his first public appearance this year, at a conference hosted by the Bank of Sweden, Jerome Powell said Fed independence is key to fighting inflation.
He did not mention rate hikes by the US central bank, which officials have hinted may need to remain hawkish on monetary policy to stem inflation.
Investors are eagerly awaiting Thursday’s release of the December US consumer price survey, which is expected to show more measured year-on-year price increases.
“There are signs that inflation is slowing significantly. Investors are mostly looking for a sharp drop in key inflation data that would get the Fed’s attention,” said Tim Ghriskey, senior strategist at Ingalls & Snyder, New York.
Most traders expect the Federal Reserve to decide at its February meeting to raise interest rates by 25 basis points.
The week marks the start of earnings season for S&P-500 companies, with earnings from major US banks expected by the end of the week. According to IBES data from Refinitiv, analysts expect a year-over-year drop in quarterly earnings of 2.2%.
Among investors, some are hoping for signs that the Fed may soon come to a halt after making seven rate hikes last year.
On the value side, Amazon and Microsoft both posted gains and put the S&P-500 in positive territory.
(French version Jean Terzian)