Technology stocks including Amazon, Facebook, Alphabet and Apple helped drive Wall Street higher just ahead of minutes of the Federal Reserve’s most recent policy meeting.
Back in January, the Federal Reserve didn’t touch the rates and left them unchanged; however, there is a possibility of rate change this time around to tame the aftermath of the recent sell-off. If we look at what’s going on in the market, the Fed fund futures are pricing in three rate hikes.
The minutes could push that fourth rate hike into play from a 50-50 as investors find out more about inflationary data and how the Fed is looking into that. Investors also took stock of the latest developments in the Broadcom-Qualcomm takeover saga.
Amazon stocks rose rose by 1.9 percent, while other technology giants saw their stocks surge as wlel. The real estate sector, however, came under pressure after data showed US home sales unexpectedly fell in January. Boeing sgained 1.4 percent after Chief Executive Dennis Muilenburg said the plane maker will generate about 15 percent of its earnings per share and about 10 percent of its cash for the full year during the first quarter of 2018.
The 10-year US Treasury bond yields, the benchmark for global borrowing costs, were slightly below the four-year peak at 2.8932 percent.
The CBOE Volatility index, a gauge of near-term stock market volatility, eased to a session low of 18.38 and below Friday’s close of 19.46.
A jump in these two gauges to multi-year highs were at the center of the selloff in equities earlier in the month.
Advancing issues outnumbered decliners on the NYSE by 2,145 to 649. On the Nasdaq, 2,068 issues rose and 686 fell.