(Reuters) – Tech stocks pushed Wall Street higher on Tuesday, and good US manufacturing data fueled optimism for the economic recovery.
Investors are awaiting additional stimulus from the US Federal Reserve, which kicks off a two-day meeting on Tuesday.
The tech sector jumped 1.6% after the opening, continuing to recover from a sharp sell-off earlier in September that knocked the S&P 500 and Nasdaq off record highs. Some strategists said that at the first Fed meeting after Governor Jerome Powell announced a more accommodative stance on inflation, the central bank may switch to buying longer-term bonds in order to maintain low long-term yields.
US industrial production rose 0.4% in August compared to July, the Federal Reserve said.
Expectations for new stimulus from the Fed have risen after a stalemate in the fiscal bailout talks and a sharp pullback in high-tech stocks earlier this month that culminated in a spectacular rally on Wall Street.
“The market is growing on expectations that the Fed will continue to keep interest rates at historically low levels,” said Sam Stovall, CFRA's chief investment strategist.
“This makes the intrinsic value models point to very high returns for the stock market in the remaining months of this year.”
By 17:35 Moscow time, the Dow Jones rose 0.64% to 28.172.00 points, the S&P 500 index added 0.94% to 3.415.47 points, and the Nasdaq rose 1.28% to 11.198.30 points.
(Medha Singh and Devik Jain in Bangalore. Translated by Alexey Kuzmin. Editor Marina Bobrova)