Jabar Ekspres – Stocks on Wall Street extended their gains in late trading Tuesday (Wednesday morning WIB), as investors awaited earnings reports of major technology companies after the bell and the Federal Reserve’s policy decision on Wednesday.
The Dow Jones Industrial Average index lifted 26.83 points, or 0.08 percent, to settle at 35,438.07 points. The S&P 500 Index added 12.82 points, or 0.28 percent, to end at 4,567.46 points. The Nasdaq Composite Index increased 85.69 points, or 0.61 percent, to close at 14,144.56 points.
READ MORE: Wall Street Closes, Investors Consider Fed’s Next Move
Six of the 11 major S&P 500 sectors ended in the red, with real estate and financials leading the declines with losses of 0.74 percent and 0.73 percent, respectively. Meanwhile, the materials and technology sectors led the gainers with gains of 1.76 percent and 1.19 percent, respectively.
US stocks ended higher on Tuesday, with investors digesting mixed earnings results from top companies such as General Motors and General Electric. Meanwhile, investors are awaiting results from tech giants like Microsoft and Google parent Alphabet after the market close to gauge whether all the enthusiasm surrounding artificial intelligence (AI) will justify the recent market rally.
“Investors want to hear from Alphabet and Microsoft about their cloud businesses, the continued impact and use of AI and their general outlook for the American and global markets,” said David Sekera, chief U.S. market strategist at Morningstar, in an interview with MarketWatch.
Of the 130 S&P 500 companies that have reported second-quarter earnings so far, about 79 percent have exceeded analysts’ expectations, according to FactSet data.
Nearly 170 companies in the S&P 500 will deliver financial reports this week, with investors relying on earnings to make decisions on where to go. That’s especially true for AI-related stocks.
“So far this year, the combined global technology market capitalization has risen by US$6 trillion, of which we estimate AI-related stocks have accounted for about US$2 trillion. We don’t think AI is a bubble given its clear use cases and solid long-term visibility, but recommend investors consider companies with clear monetization trends,” according to an analysis published by UBS Global Wealth Management on Tuesday (07/25/2023).
