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Stocks rose Tuesday following better-than-expected retail sales data ahead of the start of the Federal Reserve’s September policy meeting.
The Dow Jones Industrials popped 195.27 points to 41,817.35.
The S&P 500 index regained 31.18 points to 5,664.27.
The NASDAQ recovered 127.68 points to 17,719.80.
Microsoft rose more than 1% after the tech giant hiked its quarterly dividend by 10.7% to 83 cents per share. The company also approved a $60 billion buyback program.
Intel shares jumped 2.3% after the company said it plans to make its foundry business a subsidiary. The Biden administration also awarded the company up to $3 billion in funding through the Chips Act.
The latest retail sales data indicated solid consumer health ahead of the Federal Reserve’s policy meeting set to begin on Tuesday. Retail sales rose 0.1% in August versus economists’ estimates for a 0.2% decline, according to Dow Jones. Excluding autos, the number also came in at a 0.1% increase, which slightly missed the 0.2% consensus forecast.
While a 50-basis-point cut isn’t out of the question, the chief global strategist thinks that the Fed should take a more cautious approach to cutting and ease rates by 25 basis points. She is forecasting additional 25-basis-point cuts in November and December.
Prices for the 10-year Treasury sagged, hoisting yields to 3.65% from Monday’s 3.62%. Treasury prices and yields move in opposite directions.
Oil prices gained 84 cents to $70.93 U.S. a barrel.
Gold prices lost two dollars to $2,606.90.
