Wall Street Up Broadly as Big Tech Dips in Cautious Trade Ahead of Fed Minutes Release

NEW YORK (Sputnik) - Wall Street registered another broadly higher close on Tuesday even as Big Tech stocks fell in cautious trade ahead of the release of the highly-anticipated minutes of the Federal Reserve’s July meeting.

The Dow Jones Industrial Average, which comprises stocks of 30 large US corporations, climbed 0.7% on the day, extending Monday’s gain of 1.5%.

The S&P 500 index, which represents the top 500 US stocks, rose 0.2%, adding to the previous session’s advance of 0.4%.

The Nasdaq Composite Index, which comprises marquee names in technology such as Amazon, Apple, Netflix and Google, slid 0.2% after Monday’s gain of 0.6%.

“The risks of the Fed sending the economy into a recession are easing as inflation is slowly coming down,” Ed Moya, analyst at online trading platform OANDA, said. “The Fed’s soft [economic] landing seems achievable and that has allowed this [Wall Street] rally to continue.”

The Fed’s meeting minutes for July have taken on additional importance after a blowout US jobs report for last month eased fears over the prospect of recession. The latest reading on inflation data pointed to the largest monthly slowdown in consumer price increases since 1973.

The Fed has raised rates four times since March in order to beat inflation previously raging at four-decade highs. Rates are currently at a peak of 2.5% versus just 0.25% in February. The central bank says it expects to continue with rate hikes until inflation returns to its target of 2% per year. Inflation, as measured by the Consumer Price Index, grew by 8.7% during the year to July.

Traders are betting that the Fed will raise rates by just 50 basis points at its next meeting in September, versus bets previously for a 75 basis-point hike.