Wall Street closed higher on Tuesday, pulled up by tech and industrial stocks. The tech sector particularly improved on expectations that the Fed would cut rates next week. Global oil prices slid in light of Ukraine-related tensions that heightened demand worries and hurt market sentiment. All three benchmark indexes finished in the green.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 0.4%, or 185.13 points, to close at 47,474.46. Sixteen components of the 30-stock index ended in positive territory, while 14 ended in the negative.
The tech-heavy Nasdaq Composite added 137.75 points, or 0.6%, to close at 23,413.67.
The S&P 500 gained 16.74 points, or 0.3%, to close at 6,829.37. Eight of the 11 broad sectors of the benchmark index closed in the red. The Energy Select Sector SPDR (XLE), the Materials Select Sector SPDR (XLB) and the Utilities Select Sector SPDR (XLU) receded 1.3%, 0.8% and 0.7% respectively, while the Industrials Select Sector SPDR (XLI) and the Technology Select Sector SPDR (XLK) advanced 0.9% and 0.8%.
The fear gauge CBOE Volatility Index (VIX) decreased 3.8% to 16.59. A total of 15.4 billion shares were traded on Tuesday, lower than the last 20-session average of 18.4 billion. Advancers outnumbered decliners by a 1.01-to-1 ratio on the NYSE, while declining issues edged out advancing ones by a 1.07-to-1 ratio on the Nasdaq.
Wall Street Benefits From Rate-Cut Optimism
Tech and industrial stocks climbed on Wall Street on Tuesday as investors gained confidence that the Fed is approaching the end of its tightening campaign. Softer economic readings and recent comments from policymakers suggested a steadier rate environment ahead, reducing pressure on growth-oriented sectors. With expectations shifting toward rate stability, tech companies benefited from improved sentiment tied to earnings prospects.
Industrial shares also advanced as a calmer Fed outlook signaled more predictable conditions for demand and capital investment. Hopes for a gradual shift toward policy easing encouraged optimism across manufacturing and infrastructure-linked businesses. The Industrial sector also got a major boost from The Boeing Company BA, rising 10.1%, after its management forecast significantly higher deliveries of 737 and 787 jets for the coming year. The market’s reaction on Dec. 2 reflected a broader belief that cooling inflation and a patient central bank could support a more resilient economic backdrop, helping both tech and industrial sectors build upward momentum.
Consequently, shares of Palantir Technologies Inc. PLTR and Caterpillar Inc. CAT jumped 1.9% and 2.5%, respectively. PLTR carries a Zacks Rank #2 (Buy), while CAT has a #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Oil Slips as Peace Hopes and Supply Worries Collide
Oil prices fell about 1% on Tuesday as traders balanced shaky Russia-Ukraine peace prospects with renewed oversupply concerns. Brent crude closed at $62.45/barrel, and WTI crude at $58.64/barrel after talks in Moscow involving Vladimir Putin, U.S. envoy Steve Witkoff and Jared Kushner shifted market attention toward geopolitical uncertainty.
No economic data was released on Tuesday.
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The Boeing Company (BA): Free Stock Analysis Report Caterpillar Inc. (CAT): Free Stock Analysis Report Palantir Technologies Inc. (PLTR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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