NEW YORK: Wall Street stocks edged higher early Tuesday, as expectations of Federal Reserve interest rate cuts countered uncertainty about tariffs and the US economy.
US equity indices rose more than one percent on Monday, essentially recovering Friday’s losses that had followed a downcast American jobs report.
The jump comes as markets price in a September Fed interest rate cut and eye as many as two additional cuts later this year.
About 30 minutes into trading, the Dow Jones Industrial Average was flat at 44,179.97.
Wall Street springs higher after Friday’s tumultuous selloff
The broad-based S&P 500 added 0.1 percent at 6,338.41, while the tech-rich Nasdaq Composite Index climbed 0.3 percent to 21,124.51.
Tuesday’s modest market advance made sense in light of unresolved talks with key trading partners China, Canada and Mexico, said Art Hogan of B. Riley Wealth Management.
“I think investors are waiting for better news on that front, but not panicking yet,” Hogan said.
“It’s going to be impossible to really get a good read on what’s the ultimate tariff level” across the board absent deals with those important partners, he added.
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