U.S. stocks came off their session highs on Tuesday, but major benchmarks were still on track for another session of gains as the Federal Reserve began a two-day policy meeting.
The Nasdaq was leading the broader market as technology shares continued to make up lost ground during last week’s selloff.
How are equity benchmarks performing?
The Dow Jones Industrial Average DJIA, +0.20% rose 79.39 points, or 0.3%, to 28,072.72, while the S&P 500 SPX, +0.62% gained 26.23 points, or 0.8%, to trade at 3,409.77. The Nasdaq Composite COMP, +1.27% was up 162.46 points, or 1.5%, at 11,219.11.
On Monday, the Dow rose 327.69 points, or 1.2%, to finish at 27,993.33, after briefly trading above the 28,000 threshold. The S&P 500 added 42.57 points, or 1.3%, closing at 3,383.54. The Nasdaq Composite climbed 203.11 points, or 1.7%, to end at 11,056.65, rebounding from a rout that last week saw the tech-heavy index enter correction territory by falling more than 10% from a record high.
What’s driving the market?
A pickup in merger-and-acquisition activity in the technology sector helped stocks regain their footing after last week’s selloff, perhaps prompting investors to reason that valuations weren’t so stretched if companies like chip maker Nvidia Corp. NVDA, +0.69% were poised to make acquisitions, said Elliott Savage, portfolio manager for the YCG Enhanced Fund, in an interview. Nvidia on Sunday said it reached an agreement to buy Arm Holdings from SoftBank for $40 billion.
Caution remains in order though, he said. A sharp rally by stocks off the March pandemic lows has been fueled by a combination of improving