Shares on Wall Street posted slight gains in a choppy session on Tue, as the US Federal Reserved kicked off its May meeting, which is widely expected to conclude later today with a 50 basis point (bps) rate hike. Expectations for rate hikes keep going higher and higher. Fed Fund futures now indicate a cumulative 276 bps of rate hikes this year.
The Dow Jones Industrial Average gained 67.29 pts, or 0.2%, to close at 33,128.79. The S&P 500 index rose 0.48%. The tech-heavy Nasdaq Composite advanced 0.22%. The small-cap Russell 2000 gained 0.85%.
Big tech stocks were mixed, including Apple (AAPL US, +0.96%), Microsoft (MSFT US, -0.95%), Amazon (AMZN US, -0.20%), Alphabet (GOOGL US, +0.64%), Nvidia (NVDA US, +0.35%), and Meta Platforms (FB US, +0.43%).
Starbucks (SBUX US, -1.38%) has jumped 5.11% in after-hours trade despite profit and comparative sales missing estimates. Starbucks suspended its fiscal 2022 outlook, citing lockdowns in China, inflation, and investments in its stores and employees.
The 10-year Treasury note yield slipped 0.95 basis points (bps) to 2.9712%.
The front-month Brent and WTI crude oil futures closed down $2.61 at US$104.97/bbl and $2.76 at US$102.41/bbl respectively.
The ICE dollar index (DXY), which measures the strength of the greenback against a basket of currencies, fell 0.27% to 103.465.
The most actively traded US gold futures (Jun) contracts settled up $7.00, or 0.4%, at US$1,870.60/oz. July silver, which is the most actively traded silver futures, rose 8.1 cents, or 0.4%, to end at US$22.665/oz.
European equity markets finished higher on Tue. The UK FTSE gained 0.22%, France's CAC 40 rose 0.79%, while the German DAX advanced 0.72%.