The S&P 500 added 14.53 points, or 0.3%, to 5,375.32, and the tech-heavy Nasdaq composite added 151.02 points, or 0.9%, to 17,343.55
Stocks closed mixed overall on Wall Street Tuesday, but the S&P 500 and Nasdaq composite still managed to notch more record highs.
The subdued trading came ahead of a crucial inflation data and the Fed’s latest interest rate policy decision on Wednesday.
The S&P 500 added 14.53 points, or 0.3%, to 5,375.32, driven largely by gains in tech stocks, even though more stocks dropped than rose within the index. The tech-heavy Nasdaq composite added 151.02 points, or 0.9%, to 17,343.55. Both indexes set record highs for the second consecutive day.
Apple led the broader market. It soared 7.3% after highlighting its push into AI technology.
The DJIA lagged the market. It slid 120.62 points, or 0.3%, to 38,747.42.
The key events for the market this week come on Wednesday, when the U.S. releases its latest update on inflation at the consumer level and the Fed announces its latest update on interest rates. The U.S. will also release its latest update on prices at the wholesale level on Thursday.
Wall Street expects the government’s CPI to remain unchanged at 3.4% in May. Inflation as measured by CPI is down sharply from its high at 9.1% in 2022, but it has seemingly stalled near 3%. That has complicated the Fed’s goal of bringing inflation to its 2% target rate.
The Federal Reserve has held its main interest rate at its highest level in over two decades and Wall Street is currently hoping for one or two reductions to that rate this year. Virtually no one expects the Fed to move its main interest rate at its current meeting, which started Tuesday. Policymakers will be publishing their latest forecasts on Wednesday for where they see interest rates and the economy heading.
When Fed officials released their last projections in March, they indicated the typical member foresaw around three cuts to interest rates in 2024. That projection will almost certainly fall this time around.
