Stocks Rise for Second Straight Day Before Fed Word

U.S. stocks rose slightly on Tuesday as investors looked forward to a pivotal Federal Reserve decision.

The Dow Jones Industrials gained 67.29 points to 33,128.79.

The S&P 500 gained 20.1 points to 4,175.48.

The NASDAQ Composite improved 27.74 points to 12,563.76.

Those moves come ahead of a widely anticipated Federal Reserve decision on Wednesday.

Wall Street is largely expecting interest rates the central bank to raise rates by 50 basis points this week, while some investors believe expectations of aggressive monetary tightening from the central bank are already priced into markets.

The expected rate hike comes as there are growing concerns about the global economy, due in part to China’s lockdowns and the war in Europe.

Tuesday’s gains were broad in the S&P 500, but led by the energy sector. Exxon Mobil and EOG Resources each rose more than 2%.

Defensive sectors such as health care and utilities also outperformed, with Pfizer gained 2.8% after reporting a stronger-than-expected first quarter.

Financials were another bright spot, with JPMorgan and Morgan Stanley rising more than 2%.

Chegg’s stock price tumbled nearly 30% after the textbook company issued weak guidance for the full year despite exceeding earnings expectations. Expedia docked 13% and Hilton doffed 4%, after their quarterly reports.

On the positive side, shares of Clorox rose more than 4% after the company’s fiscal third quarter results topped expectations.

On the data front, factory orders for March rose 2.2%, better than expected. Job openings came in at 11.5 million, an all-time high.

Treasury prices gained only slightly, with yields falling to 2.98% from Monday’s 2.99%. Treasury prices and yields move in opposite directions.

Oil prices dipped $2.27 to $102.90 U.S. a barrel.

Gold prices recovered from Monday’s beating, picking up $3.40 to $1,867 U.S. an ounce.