Stocks Edge Up Ahead of Fed Meeting and Jobs Report
U.S. stocks began Tuesday on a strong note as investors cautiously optimistic after a crucial Federal Reserve meeting, fresh jobs data, and imminent trade decisions. The S&P 500 and the Nasdaq both added 0.3% and 0.5%, respectively, while the Dow gained 20 points as indices were near record highs.
Corporate Earnings Dictate Market Mood
Better-than-expected corporate performances boosted investor mood. Leading the early gains was Boeing (BA), reporting Q2 revenues of $22.7 billion, which came in higher than the $21.68 billion expected from analysts.
The market now turns to the quarterly reports of leading technology companies Apple (AAPL), Amazon (AMZN), Microsoft (MSFT), and Meta (META) to chart the rest of the week.
Jobs Data in Sharp Focus Amid Fed Policy
The Federal Reserve’s two-day policy session begins July 29. There is no rate hike expected, but investors are tuned in for hints at future monetary policy amid strong economic expansion.
Meanwhile, the June Job Openings and Labor Turnover Survey (JOLTS) has been released, painting a picture of employment demand. Investors also are monitoring Friday’s nonfarm payrolls report, a key metric of labor market health.
Trade Policy Updates and Tariff Deadline
Markets are hopeful on the deadline of Aug. 1 for tariffs imposed by ex-President Donald Trump on trade between U.S. and China. There is hope that the trade truce expiring on Aug. 12 will continue.
Markets also found support in positive news in U.S. trade relations with the European Union and Japan earlier this week.
U.S. Goods Trade Deficit Narrows Sharply
In a separate economic report, the U.S. goods trade deficit decreased 10.8% in June to $86.0 billion as a $11.5 billion drop in imports was the leading factor. Exports fell $1.1 billion to $178.2 billion.
The narrowing gap is in line with analysts’ expectations and supports the theme of the strong second-quarter economic rebound.
