US stocks advanced on Tuesday as semiconductor shares extended their rally, while falling oil prices and corporate earnings supported investor sentiment ahead of the Federal Reserve’s interest rate decision.
The S&P 500 gained 0.6% to 7,722.60, while the Nasdaq Composite climbed 1.18% to 26,477.81. The Dow Jones Industrial Average edged up 15.99 points, or 0.03%, to 52,377.57.
Technology stocks led the gains following news of a US$63 billion financing package involving major banks and Blackstone to fund purchases of Broadcom technology for Anthropic.
Broadcom shares jumped 4%, AMD gained 5% and Micron Technology rose nearly 3%, extending Monday’s rebound after Anthropic filed for its highly anticipated Nasdaq listing.
The Philadelphia Semiconductor Index advanced more than 3%, reflecting renewed optimism towards artificial intelligence investment following recent concerns about heavy borrowing and infrastructure spending.
Oil prices declined amid discussions over conditions for ending the Iran war. West Texas Intermediate crude fell 1.83% to US$99.90 a barrel, while Brent slipped 1.67% to US$113.88.
The Federal Reserve began its two-day policy meeting, with interest rates widely expected to remain unchanged. Investors will focus on signals about the possibility of another rate increase before year-end.
Australian Market Outlook
Australian shares are set to open slightly higher, with S&P/ASX 200 futures up 18 points, or 0.2%, to 8,884.
The positive lead follows gains in US technology stocks, although local attention will centre on September-quarter inflation figures, which could influence the Reserve Bank’s next interest rate decision.
RBA Governor Michele Bullock will appear before the Senate Economics Committee at 11.15am AEDT, ahead of the inflation report at 11.30am AEDT.
Investors will also monitor the outcome of Israel’s election and its implications for the Iran war.
Locally, Dexus, Vicinity Centres and Austal will hold annual general meetings, while US earnings from Visa and Logitech are due after Wall Street closes.
