Apple, Netflix, Facebook rise after steep two-day decline
U.S. stocks rose on Tuesday as technology shares rebounded after a two-day decline. Investors were focused on the Federal Reserve's two-day monetary policy meeting and Attorney General Jeff Sessions' testimony before the Senate Intelligence Committee.
The Dow Jones Industrial Average climbed 93 points, or 0.4%, to 21,328, briefly touching an all-time intraday high of 21,332.77. The S&P 500 index added 12 points, or 0.5%, to 2,441, also trading in record territory, supported by gains in the consumer-discretionary and the materials sector.
Meanwhile, the Nasdaq Composite Index rose 37 points, or 0.6%, to 6,213, attempting to recoup some of its losses over the prior two sessions.
Technology shares fell sharply on Monday extending a downturn begun Friday, weighing on broader indexes, particularly in the Nasdaq, which maintains a higher concentration of tech names. Despite that, major indexes have been in a pronounced uptrend of late.
Read:Don't panic--this shows tech stocks' slide may well be a buying opportunity (http://www.marketwatch.com/story/whats-next-for-technology-stocks-bloodbath-or-bliss-2017-06-12)
And see: What sparked the Nasdaq's worst two-session, tech-fueled rout in 9 months (http://www.marketwatch.com/story/what-sparked-the-nasdaqs-worst-two-session-rout-in-9-months-2017-06-12)
The tech selloff didn't spread to other sectors in a notable way. Instead, it was countered by a move into the energy and financial sectors, which Chris Weston, chief market strategist at IG, said could potentially offer better returns.
Weston doesn't really think the 10% decline "that many had been talking about on Friday," will come to pass, he said in a note to clients.
Fed meeting kicks off: The two-day Federal Open Market Committee meeting will wrap up Wednesday with a news conference with Fed Chairwoman Janet Yellen. Market observers are nearly unanimous in the view that the fed-funds rate will be lifted, with a nearly 100% chance of an interest-rate increase, according to the CME Group (http://www.cmegroup.com/trading/interest-rates/countdown-to-fomc.html?redirect=/trading/interest-rates/fed-funds.html).
"We are seeing a little of a move back up mainly due to expectations from Fed meeting," said Chris Gaffney, president at EverBank World Markets.
With an interest-rate increase priced in, investors are comfortable with the idea that the Fed will remain cautious to ensure that tighter monetary policy doesn't hinder growth, he said.
The Fed "has been confronted recently with softer inflation data and only scattered evidence of an expected reacceleration of activity," David Joy, chief market strategist at Ameriprise Financial wrote in a note. "While few expect the Fed to refrain from acting this time, what it must say about upcoming meetings and the possible timing of the start of unwinding its balance sheet will be scrutinized."
Check out: Here's what the Fed will signal when it hikes interest rates (http://www.marketwatch.com/story/heres-what-the-fed-will-signal-when-it-hikes-interest-rates-2017-06-12)
Meanwhile, Sessions is categorically denying any private meetings with Russians in his testimony (http://blogs.marketwatch.com/capitolreport/2017/06/13/attorney-general-jeff-sessions-testifies-to-senate-about-russia-probe-live-blog-and-video/)to the Senate. The Justice Department's probe into Russia's efforts to interfere in 2016 election is seen as a potential headwind for the market.
Any "shocking" revelation from the testimony that could hamper President Donald Trump's administration from introducing further policy change could send stocks back into negative, said Gaffney.
Economic data: The National Federation of Independent Business reported small-business sentiment was steady in May (http://www.marketwatch.com/story/small-business-sentiment-holds-steady-in-may-2017-06-13). Separately, the producer-price index (http://www.marketwatch.com/story/us-wholesale-inflation-eases-in-may-but-still-elevated-ppi-shows-2017-06-13) was flat last month following a sharp 0.5% increase in April, as had been expected.
Stock movers: Shares of Facebook Inc. (FB) added 1.5%, Google parent Alphabet Inc. (GOOGL) was up 0.9%, and Amazon.com Inc. (AMZN) was up 1.3%.
Eli Lilly & Co. (LLY) rose 0.3% after the company said its pain drug with Pfizer Inc. (PFE) had received fast track designation (http://www.marketwatch.com/story/eli-lilly-stock-rises-15-after-pain-drug-gets-fast-track-designation-from-fda-2017-06-13) from the Food and Drug Administration.
Cheesecake Factory Inc. (CAKE) shares slumped 9.6% after the company cut its second-quarter outlook (http://www.marketwatch.com/story/cheesecake-factory-shares-sink-after-downward-revision-of-guidance-2017-06-13).
Other markets: European stocks settled firmly higher (http://www.marketwatch.com/story/european-stocks-rise-as-techs-move-toward-recouping-losses-2017-06-13), buoyed by a tech rebound. Asian markets shook off Wall Street's Monday woes and mostly rose (http://www.marketwatch.com/story/asian-markets-shake-off-wall-streets-woes-post-gains-2017-06-12).
The dollar fell against the British pound , which rose after a bigger-than-expected gain in U.K. inflation. Oil prices finished higher for a third straight session (http://www.marketwatch.com/story/oil-prices-higher-again-but-supply-glut-hangs-over-market-2017-06-13), while gold futures booked its fifth straight loss in a row (http://www.marketwatch.com/story/gold-prices-fall-for-5th-day-ahead-of-expected-fed-rate-hike-2017-06-13).
--Barbara Kollmeyer contributed to this article.
(END) Dow Jones Newswires
June 13, 2017 15:37 ET (19:37 GMT)