Posted Jan 10, 2023, 10:34 PM
by Caroline Valetkevitch
NEW YORK, Jan 10 (Reuters) – The New York Stock Exchange ended higher on Tuesday, on the heels of gains by big tech stocks, amid relief after the head of the United States Federal Reserve (Fed), Jerome Powell, refrained 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 advanced for its part by 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 was key to fighting inflation.
He did not mention the US central bank’s rate hikes, which officials have hinted may need to remain aggressive in monetary policy to stem inflation.
Investors are eagerly awaiting the publication on Thursday of the December consumer price survey in the United States, which should show a more measured year-on-year price increase.
“There are signs that inflation is slowing significantly. Investors are mostly looking for a sharp decline in key inflation data that would catch the Fed’s attention,” said Tim Ghriskey, senior strategist. at Ingalls & Snyder, New York.
Most traders anticipate that the Federal Reserve will decide at its February meeting to raise interest rates by 25 basis points.
The week marks the start of the earnings season for S&P-500 companies, with earnings from major US banks expected at the end of the week. According to IBES data from Refinitiv, analysts expect a year-over-year decline in quarterly earnings of 2.2%.
Among investors, some are hoping for signs that the Fed may soon pause after making seven rate hikes last year.
On the value side, Amazon and Microsoft recorded gains and carried the S&P-500 into the green.
(French version Jean Terzian)