US stocks opened higher on Tuesday after a slew of industrial data suggested a pick-up in factory activity and retail sales pointed to strong consumer confidence ahead of the crucial Federal Reserve policy meeting.
The S&P 500 index opened 0.4% higher at 5,655.5, a seventh straight day of advance. The tech-heavy Nasdaq Composite was up 0.6% at 17,707. The Dow Jones Industrial Average started 0.2% at 41,723.8 and soon hit an all-time high.
Seven of 11 S&P 500 sectors gained, with consumer discretionary gaining 1% while healthcare dropping 0.4%. Financial and industrials also traded in green.
The tech and chip pack saw upswing, with Intel Inc., Microsoft Corp. and Amazon Inc. gaining 1.8% each. Tesla Motor Inc. shares jumped 2.3%.
The US August Industrial Production advanced 0.8% month-on-month compared to estimate of 0.2%. Capacity utilisation was 78% versus estimate of 77.9%.
Factory output rose 0.9% sequentially in August, copared to the projection of 0.2% increase.
Retail sales rose 0.1% in August versus economists’ estimates for a 0.2% decline. Excluding autos and gasoline stations, sales advanced for fourth month.
The Fed is scheduled to meet on Tuesday and Wednesday, with expectations high for its first interest rate cut since it began raising rates in March 2022. A reduction this week could be significant, as investors hope it will lower borrowing costs for companies, enhance earnings growth, and stimulate overall economic expansion.
Meanwhile, the US Dollar weakened. The Bloomberg Dollar Spot Index fell 0.04% to 100.72, as the British Pound, Japanese Yen and the Euro gained.
The yield on benchmark 10-year US Treasuries was little changed at 3.64%.
Gold declined from its record high by 0.3% to $2,601.90 an ounce.
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