NEW YORK: Stocks on Wall Street ticked higher Tuesday, as traders looked to reverse some of the gloomy trading day on Monday and lowered their expectations of a March interest rate cut.
The Federal Reserve recently voted to hold interest rates at a 23-year high and signaled it expects three rate cuts this year – just not yet.
In his comments published Sunday, Federal Reserve chair Jerome Powell chairman Powell “made it absolutely clear” the Fed is not planning to cut interest rates early despite recent progress on inflation, Quincy Krosby from LPL Financial told AFP.
Wall St falls as Treasury yields ascend
“The question right now is whether or not this is just now a normal pullback,” he said.
Around 15 minutes into trading, the Dow Jones Industrial Average was up 0.3 percent at 38,409.91.
The broad-based S&P 500 rose 0.3 percent to 4,956.04, while the tech-rich Nasdaq Composite Index increased by 0.3 percent to 15,639.50.
US Treasury yields, which can act as a proxy for interest rate expectations, eased slightly following yesterday’s surge on diminishing expectations of a March cut.
Among individual stocks, drug company Eli Lilly’s share price jumped more than 3.7 percent after strong earnings results driven by demand for its weight-loss drugs.
And music streaming company Spotify saw its shares rise close to eight percent in New York after it reported strong guidance for the year ahead.
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