Wall Street stocks rallied on Tuesday, while the dollar weakened, as US earnings season entered full swing and investors assessed the future path of monetary policy.
The S&P 500 equity gauge ended the day up 2.8 per cent, the biggest daily increase since late June. The technology-heavy Nasdaq Composite rose 3.1 per cent, also the biggest move since late June, led by gains for mega-caps Amazon, Alphabet and Microsoft. Facebook-owner Meta ended the day up 5.1 per cent.
The broad rally came as investors continued to debate whether the possibility of recession would compel the US Federal Reserve to soften its monetary policy stance. After consumer price inflation in the world’s biggest economy hit a 40-year high of 9.1 per cent last month, the central bank is expected to raise its main interest rate by 0.75 percentage points next week, taking it to a range of 2.25 per cent to 2.5 per cent.