US stocks posted solid gains early Tuesday morning, putting stocks on a rally path as the Federal Reserve is set to kick off its two-day policy meeting and investors await the debut of a product for Apple Inc. and a new round of economic reports.
How do capital standards work?
Dow Jones Industrial Average YM00 futures,
+ 0.63%
YMU20,
+ 0.61%
increased by 194 points to 28,065, an increase of 0.7%, the S&P 500 ES00 index,
+ 0.72%
ESU20,
+ 0.73%
rose 24.80 points, or 0.7%, to 3397, while Nasdaq-100 NQ00 futures,
+ 1.06%
NQU20,
+ 1.06%
rose 111.50 points, or 1%, to 11,378.25.
Monday Dow DJIA,
+ 1.18%
rose 327.69 points, or 1.2%, to 27,993.33 after briefly trading above the 28,000 threshold. S&P 500 SPX,
+ 1.27%
added 42.57 points, or 1.3%, to close at 3383.54. Composite COMPONENT Nasdaq,
+ 1.87%
climbed 203.11 points, or 1.7%, to finish at 11,056.65, ending a two-session losing streak.
Russell 2000 RUT Index,
+ 2.65%
low-cap stocks rose 39.70 points, or 2.7%, to 1,536.97 points, beating the performance of major stock indices.
What drives the market?
Stocks are likely to rise early Tuesday, boosted by positive economic data from China, where retail sales rose in August for the first time in 2020, rising 0.5% year-on-year last month, according to China’s National Bureau of Statistics.
On Monday, investors were delighted by the positive news about the COVID-19 vaccine from AstraZeneca AZN.
+ 0.54%
and BioNTech BNTX,
+ 3.60%
as well as news of the Nvidia NVDA merger,
+ 5.81%
and Oracle ORCL,
+ 4.31%
and on Tuesday will be monitoring the product launch of Apple Inc. AAPL,
+ 2.99%
as well as several IPOs.
The Federal Reserve plans to begin its policy meeting later today, followed by a press conference and a new statement from its officials on Wednesday, followed by decisions by the central banks of the Bank of England and the Bank of Japan on Thursday.
“Global markets are focused on the two-day Fed meeting starting on Tuesday, markets are moderately positive as investors look forward to a favorable outcome,” wrote Mihir Kapadia, CEO of Sun Global Investments, on Tuesday. The meeting of the policy-making Federal Open Market Committee will also be the first since the central bank presented its new policy framework for targeting average inflation.
“While other factors on the continent have contributed to this positive momentum, the overwhelming factor driving the markets is the Fed,” Kapadia wrote. “Investors will be looking for signs of what the outlook for US growth and inflation looks like, as well as possible reactions from the Fed,” he said.
Investors are also watching Snowflake Inc., a cloud computing company due to go public today on the New York Stock Exchange and is backed by Warren Buffett. Berkshire hathaway
BRK.A,
+ 0.79%
BRK.B,
+ 0.92%
and Salesforce.com
CRM,
+ 1.45%…
Snowflake on Monday raised the proposed price range for its initial public offering to $ 100-110, up from the previous $ 75 to $ 85. The company plans to place 28 million shares and raise up to $ 3.08 billion.
Separately Apple Inc. AAPL,
+ 2.99%
will unveil its first virtual product at 1:00 pm ET, where the Cupertino, California-based tech giant is expected to showcase its latest smartwatch and iPad, a debut that could be the next catalyst for the popular company’s stock.
Looking ahead on Thursday, investors await a report on manufacturing activity in the New York area, the Empire State Manufacturing Index, and import and export price data due out at 8:30 am ET. Industrial production report for August is due out at 9:15 am.
To read: IPO Market Prepares For Busiest Week Since May 2019 – Uber IPO Week – With 12 Trades Available
What stocks were in the spotlight?
-
Promotions Oracle Corp.
ORCL,
+ 4.31%
was in the spotlight after Wall Street Magazine reported that the Trump administration is considering applications from companies to become a “strategic partner” of the American company TikTok, owned by China’s ByteDance.
