Updated March 18th, 2024 at 19:52 IST

Nasdaq leads Wall Street higher ahead of Fed meeting

Tesla surged 2.8 per cent after announcing a price increase for its Model Y EVs in select European countries.

Reported by: Business Desk
Wall Street | Image:Unsplash
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The tech-heavy Nasdaq spearheaded gains among its Wall Street counterparts on Monday, as investors expected the upcoming US Federal Reserve meeting, where the central bank is expected to maintain borrowing costs and offer insights into its monetary policy path.

Major tech giants saw positive movement, with Alphabet climbing 6.4 per cent following reports of potential collaboration with Apple to integrate Google's AI engine into the iPhone.

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Tesla surged 2.8 per cent after announcing a price increase for its Model Y EVs in select European countries.

Investor focus also turned to Nvidia, which commenced its annual developer conference, with expectations centered on new chip announcements from CEO Jensen Huang during a keynote address.

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Peers like Micron Technology and Intel also experienced gains of 2.3 per cent and 1.1 per cent, respectively.

Last week's stronger-than-expected inflation data prompted reconsideration among investors regarding the timing and extent of potential rate cuts in 2024. Despite this, Wall Street reached new all-time highs in March, albeit experiencing some retracement last week.

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A hawkish stance from the Fed could exert additional pressure on high-flying indexes.

Goldman Sachs revised its forecast, now anticipating three interest rate cuts in 2024 following slightly firmer-than-expected inflation figures.

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Nasdaq resolved connectivity and stock order issues after a more than two-hour disruption.

As of mid-morning, major indices were in positive territory, with all 11 S&P 500 sectors trading higher. Communication services led with a 3.1 per cent increase.

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Xpeng's U.S.-listed shares rose 7.4 per cent on plans to introduce a more affordable EV brand amid intense price competition.

Boeing dipped 1.6 per cent following reports of a federal grand jury subpoena related to a midair incident involving a Boeing door plug on an Alaska Airlines flight.

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Super Micro Computer, newly added to the S&P 500, saw a 6.3 per cent climb.

Advancing issues outnumbered decliners on both the NYSE and Nasdaq.

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The S&P and Nasdaq recorded new highs, while new lows remained minimal.

(With Reuters inputs)
 

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Published March 18th, 2024 at 19:52 IST