US Stocks Advance Amid Rate cut Expectations, Microsoft Dips
US stocks continued their upward trajectory Tuesday, bolstered by growing anticipation of potential interest rate cuts by the federal Reserve. The Nasdaq and S&P 500 both reached new highs, signaling sustained investor optimism as the holiday shopping season approaches.
The market’s positive momentum reflects a broader belief that the Federal Reserve may begin easing monetary policy in the coming months, potentially stimulating economic growth. This expectation is especially impactful for sectors sensitive to interest rates, such as technology and real estate. However, not all stocks participated in the rally; microsoft experienced a decline, contrasting with the overall market trend.
The S&P 500 rose to 4,588.96, while the Nasdaq Composite climbed to 14,353.17. Advancing stocks considerably outweighed declining ones on both the New York Stock Exchange (2.88 to 1) and the Nasdaq (2.73 to 1). total trading volume reached 15.44 billion shares, below the recent 20-day average of 18.19 billion.
Microsoft shares fell despite the broader market gains. The reason for the decline was not promptly clear.
This is a provisional value based on LSEG data.
