The S&P 500 reached a new record high on Tuesday as Wall Street eagerly awaited the Federal Reserve’s decision on interest rates. The benchmark index rose 0.6% to 5,178.51, surpassing its previous all-time high. The Dow Jones Industrial Average also saw a significant jump of 0.8%, while the Nasdaq composite gained 0.4%.
One of the standout performers of the day was International Paper, which saw an 11% increase in its stock price after announcing Andrew Silvernail as its new CEO. Unilever’s decision to spin off Ben & Jerry’s and cut 7,500 jobs also led to a 2.8% increase in its US-traded shares.
Nvidia, a major player in the artificial intelligence technology sector, experienced a volatile day on the market. Despite initially being a drag on the market, the company’s stock ended the day with a 1.1% gain after unveiling new products at its developers’ conference.
On the flip side, Super Micro Computer saw a 9% decline in its stock price after announcing plans to sell 2 million shares. The company had experienced a meteoric rise in its stock price over the past year.
All eyes were on the Federal Reserve as it began its latest meeting on interest rates. The expectation is for the Fed to maintain its current interest rate, but recent reports on inflation have raised concerns about the possibility of fewer rate cuts this year.
In the bond market, Treasury yields eased ahead of the Fed’s announcement, with the yield on the 10-year Treasury slipping to 4.29%. High yields and interest rates can impact stock prices and market enthusiasm.
Bitcoin’s price continued to slide, dropping below $63,900 after reaching a peak above $73,000 last week. In global markets, Japan’s Nikkei 225 rose after the Bank of Japan raised its benchmark interest rate for the first time in 17 years.
Stocks in Hong Kong and Shanghai fell after China Evergrande Group was fined for allegedly falsifying revenue. Overall, stock markets in Asia and Europe saw mixed results.
The Federal Reserve’s decision on interest rates will be closely watched by investors as they navigate the ever-changing market landscape.
