Dow up 140 points as stocks continue rebound from tech rout, await Apple event

U.S. stocks rose Tuesday, putting major benchmarks on track for another session of gains as the Federal Reserve began a two-day policy meeting and investors awaited a product debut for Apple Inc.

How are equity benchmarks performing?

The Dow Jones Industrial Average DJIA, +0.58%  rose 148.53 points, or 0.5%, to 28,141.86, while the S&P 500 SPX, +0.97%  gained 27.10 points, or 0.8%, to trade at 3,410.64. The Nasdaq Composite COMP, +1.40%  was up 117.09 points, or 1.1%, at 11,173.74.

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.

The Russell 2000 index RUT, +0.68% of small-capitalization stocks rose 39.70 points, or 2.7%, to end at 1,536.97, outperforming the major stock benchmarks.

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, +0.83%  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

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