© Reuters. Traders work on the trading floor of the New York Stock Exchange (NYSE) in New York City, U.S., January 5, 2023. REUTERS/Andrew Kelly
By Caroline Valetkevitch
NEW YORK (Reuters) – U.S. stocks rose in afternoon trading on Tuesday, buoyed by high-growth stocks, on relief that Federal Reserve Chairman Jerome Powell refrained in a speech from commenting on the rate policy.
In his first public appearance of the year, Powell told a forum sponsored by the Swedish central bank that Fed independence is essential to combat inflation.
Recent comments by other Fed officials have supported the view that the central bank should remain aggressive in raising interest rates to control inflation. Fed Governor Michelle Bowman said on Tuesday that the bank will have to raise interest rates further to combat high inflation.
Investors eagerly awaited the US Consumer Price Index report on Thursday, which is expected to show some moderation in December year-on-year prices.
“There are some signs that inflation is slowing significantly. What investors are really looking for is a gap to the downside in the headline inflation data that could likely catch the eye of the Fed,” said Tim Ghriskey, senior portfolio strategist. of Ingalls & Snyder in New York.
Traders are betting on a 25 basis point rate hike at the Fed’s next policy meeting in February.
Communications services and consumer discretionary were among the best performing sectors on the day.
He rose 119.1 points, or 0.36%, to 33,636.75, gained 20.54 points, or 0.53%, to 3,912.63 and added 82.96 points, or 0.78%, to 10,718, 61.
Amazon.com Inc (NASDAQ:) and microsoft corporation (NASDAQ:) gave the S&P 500 its biggest boost.
Some investors are waiting for signs that the Fed may take a break soon after raising the federal funds rate seven times in 2022.
The World Bank cut its 2023 growth forecasts on Tuesday to levels teetering on the brink of recession for many countries as the impact of central bank rate hikes intensifies.
Shares of Broadcom (NASDAQ:) Inc fell, a day after a report that Apple Inc (NASDAQ:) plans to replace a Broadcom chip in its devices with an in-house design by 2025.
Issues going up outnumbered going down on the New York Stock Exchange by a ratio of 2.06 to 1; on Nasdaq, a 2.31-to-1 ratio favored advancers.
The S&P 500 posted two new 52-week highs and no new lows; the Nasdaq Composite posted 54 new highs and 25 new lows.
