On Tuesday, the Nasdaq reached a record daily high, with the total gain in U.S. stocks led by financial and technology companies, as investors weighed the chances of a rate hike this year. Just as the U.S. earnings season is coming to a close, the attention shifts to Fed Chair Janet Yellen’s upcoming speech on Friday of this week for any indications of when the central bank will hike rates. Yellen’s position will either endorse or dismiss the perceived hawkish view that Fed policymakers have taken as of late. A number of Fed officials, including Vice Chair Stanley Fischer, have indicated that a rate increase in the coming months was a possibility. Traders’ wages of a rate hike in September are at 15 percent, and increase to 40 percent for December, according to the CME Group’s FedWatch tool.
“… By no means will the Fed want to cut off the bait for the September or December meeting,” stated Steven Wieting, global chief investment strategist at Citi Private Bank.
Tuesday morning, the Dow Jones industrial average gained 93.14 points, or 0.5%, at 18,622.56. The S&P 500 advanced 9.57 points, or 0.44%, at 2,192.21, only 1 point off from its record intraday high. The Nasdaq Composite increased 24.05 points, or 0.46%, at 5,268.66. It hit a record high of 5,272.51. All 10 major S&P 500 indexes increased..
Advancing issues outnumbered decliners on the NYSE by 2,245 to 418. On the Nasdaq, 1,639 issues gained and 579 declined. Lastly, the S&P 500 index showed 19 new 52-week highs and no new lows, while the Nasdaq reported 66 new highs and five new lows.