On Tuesday, Nasdaq hit an intraday record as top-shelf companies like Amazon and Microsoft performed phenomenally well with the former rising 1.5% for its first record-high close since September and the latter hitting a 0.8% intraday record. According to Adobe Digital Economy Index, Amazon saw over $5.6 billion in total online sales in the United States on the first day of its Prime promotional event.
Investors also anticipated remarks about the economic recovery from Federal Reserve Chair Jerome Powell-in prepared remarks released late on Monday, Powell reiterated that recent high inflation was expected to prove temporary. The Fed chief was due to speak before Congress at 2 p.m. ET (1800 GMT).
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Growth stocks, including major tech names like Apple and Nvidia, have rallied since the Fed last week took a stance on future rate hikes viewed by many as more aggressive than expected with the S&P growth index being added over 1%. This growth follows the Fed’s last Wednesday’s projection as predicted an accelerated timetable for interest rate increases, compared to a nearly 2% drop in the value index.
“The market was caught off guard regarding the Fed’s hawkish commentary, and that’s 100% of what is happening,” said Andrew Mies, a chief investment officer of 6 Meridian.” All the smart people were surprised about how hawkish the Fed was, and now they are adjusting their portfolios.
Nine of the 11 major S&P sector indexes rose, with consumer discretionary and tech upmost.