Nasdaq, S&P 500 Rise Ahead of Tech Reports, Fed Rate Hike

Jul 25 (Reuters) – The Nasdaq and S&P 500 traded higher on Tuesday in turbulent trading as investors braced for quarterly reports from Alphabet and Microsoft, as well as a rate hike by the Federal Reserve.

“Inflation has fallen, the economy is weakening and there are those who believe that further interest rate hikes are unnecessary,” said Robert Pavlik of Dakota Wealth.

US tech giants are expected to report an end to a nearly year-long slowdown in their cloud business as signs of economic resilience encourage customers to increase their tech spending. The increase in demand for digital advertising will also help improve the performance of the tech sector.

Alphabet shares fell 0.27% at 5:43 p.m. Moscow time, while Microsoft gained 0.43%. Quarterly heavyweight reports will be released upon the call.

The Dow Jones was stable at 35,424.06, the S&P 500 was up 0.12% to 4,560.07 and the Nasdaq was up 0.40% to 14,115.46.

The rise of the Dow Jones Index, which posted its longest streak of positive trading sessions in six years on Monday, limits Boeing’s 1.1% decline.

General Electric shares rose 5.96% after improving its full-year adjusted earnings forecast. The company relied on the high demand of air carriers for parts and services for aircraft engines.

RTX shares fell 14.27% after the defense company said many of the Pratt & Whitney GTF engines that power the Airbus A320neo will require accelerated disassembly and inspection.

Total S&P 500 earnings are expected to fall 7.7% in the second quarter, according to Refinitiv data.

3M Co rose 5.72% after the US industrial conglomerate announced quarterly results, raising its full-year profit guidance, while Alaska Air fell 11.22% as the airline’s full-year revenue growth forecast fell short of expectations.

The original message in English is available at the code: (Bansari Mayur Kamdar and Johann M Cherian in Bangalore)

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