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* City, JPM decrease index of stock banks
* S&P 500, Apple Top Boost on Nasdaq
* Tesla gains for fifth straight season
* Index: Dow 0.45%, S&P 0.93%, Nasdaq 1.52% (updated till early afternoon)
By Medha Singh and Devik Jain
September 15 (Reuters) – Tech shares pushed Wall Street to a high on Tuesday, led by Apple shares ahead of a launch event at the company, while investors expected the Federal Reserve to continue with its dovish stance as the central A two-day meeting of the bank was going on.
Apple Inc’s 1.8% growth was the biggest boost for the S&P 500 and Nasdaq for a broadcast event where the company hopes to unveil updates to products such as the Apple Watch and iPads. The event starts at 1 pm ET (1700 GMT).
CFRA chief investment strategist Sam Stowall in New York said, “(Apple) is always trying to do something that’s looking at the game changing (and) Wall Street Apple event and hoping to come up with it.” “
The tech index jumped 1.5% earlier this month due to a technical selloff that halted Wall Street’s rally.
“Improvement has probably run its course and markets are now focusing on some positive things,” said John Praveen, QMA’s portfolio manager.
“Some positive news and economic data on the vaccine front suggest this global recovery as the COVID recession is on track, and the markets are backed by a very favorable Fed.”
Some strategists said that in its first policy meeting since Fed Chair Jerome Powell announced a more aggressive stance on inflation, the central bank could switch its treasury purchases toward more long-term debt to keep long-term yields low. Is, some strategists said.
The Fed’s expectations have increased amid stalemate in negotiations for fiscal relief and economic reports have suggested a disproportionate recovery from the coronovirus-induced recession.
Data showed on Tuesday that US factory production grew strongly in August. Different US import prices rose more than expected in the same month, supporting the view that inflationary pressures were increasing.
Earlier in the day, data showed that China’s industrial output in August was the highest in eight months.
At 12:28 pm, the Dow Jones Industrial Average was up 125.51 points or 0.45% at 28,118.84, the S & P 500 was up 31.57 points or 0.93% at 3,415.11. The Nasdaq Composite was up 168.22 points or 1.52% at 11,224.87 points.
Citigroup Inc. dropped 3.7% after a report that federal regulators were preparing to reprimand the US lender for failing to improve their risk-management systems.
JPMorgan Chase & Co. slipped 2.1% as it lowered its full-year net interest income estimate.
The bank sub-index slipped 1.7%.
Tesla Inc. added 5.8%, rising for the fifth day, as anticipation for its “Battery Day” event increased next week, where Chief Executive Officer Elon Musk received the latest improvements to the electric-car manufacturer’s battery technology Is expected to be postponed.
Outlining decliners outpacing the 2.08-to-1 ratio on the NYSE and the 1.68-to-1 ratio on the Nasdaq.
The S&P index recorded 19 new 52-week highs and a new low, while the Nasdaq recorded 58 new highs and 12 new lows. (Reporting by Medha Singh and Devik Jain in Bengaluru; Editing by Shaunak Dasgupta)