Investing.com — The S&P 500 and Nasdaq hit a record close for a second straight day on Tuesday, supported by falling Treasury yields and a rally by Apple to record highs, although there was an element of caution before of the federal elections. Decision on the reserve interest rate.
At 16:00 (CET), the dollar gained 0.3% and rose 0.9% to close at new all-time highs. But it fell 120 points, or 0.3%.
Apple reaches a record after presenting its ai strategy
Apple (NASDAQ rose 7%, hitting an all-time high after Wall Street applauded its artificial intelligence strategy, which was unveiled a day earlier at its annual developers conference.
Apple unveiled a partnership with OpenAI to integrate the ChatGPT chatbot into its products, as the tech giant looks to improve its artificial intelligence capabilities expected in the iPhone refresh cycle.
Since the ai functionality will only be compatible with older versions of the iPhone 15 Pro… “it could lead to a much-needed iPhone refresh cycle,” DA Davidson said in a note.
Treasury Yields Fall as 10-Year Treasury Auction Signals Stronger Demand
The yield fell 7.4 basis points to 4.397% after a $38 billion 10-year bond auction was awarded at lower-than-expected yields, pointing to signs of stronger demand.
2-, 5-, and 30-year Treasury yields also came under pressure following better-than-expected auction results.
Fed begins meeting as rate decision looms
It began its two-day policy meeting on Tuesday and the central bank is expected to leave interest rates unchanged in a range of 5.25% to 5.5% on Wednesday.
The monetary policy statement will also include the Federal Reserve's updated “dot plots,” or outlook on interest rates, inflation and unemployment. Meanwhile, the Federal Reserve chair's remarks are also expected to attract most of investors' attention.
In addition to the Federal Reserve's decision, it will also release its US May reading, a long-awaited indicator of inflation in the world's largest economy.
More signs of easing inflation could cement expectations of rate cuts, especially given signs of economic weakness, but bad inflation could spook investors and resurrect recession fears that have been simmering for months.
General Motors rises on share buyback plan, Eli Lilly on progress of Alzheimer's drug
Shares of General Motors (NYSE:) rose 1.4% after the auto giant's board of directors authorized a new $6 billion stock buyback plan.
Shares of Eli Lilly (NYSE ) traded above the flat line after its Alzheimer's drug donanemab received unanimous backing from an FDA panel.
(Peter Nurse contributed to this story)
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