US stocks bounce back toward records as tech companies rise
NEW YORK (AP) — U.S. stocks are changing course Tuesday as investors put an end to a two-day drop for technology companies.
Investors are selling traditionally safe, high-yielding investments like household goods makers and phone companies.
The Nasdaq composite, which has a large concentration of technology companies, rose 40 points, or 0.7 percent, to 6,215.
Big tech companies like Apple and Alphabet have been responsible for a huge portion of the stock market's gains this year.
Financial services firm State Street jumped $1.69, or 1.9 percent, to $88.80 while regional bank Comerica added $1.43, or 2 percent, to $73.97.
Brian Rehling, co-head of global fixed income strategy at Wells Fargo Investment Institute, said investors will scrutinize the Fed's views on inflation and how aggressive it will be in raising interest rates in the future.
Rehling added that investors also want to know about the Fed's plan to start reducing its huge portfolio of bonds.
Information technology company Science Applications International Corp. slumped after its sales fell short of Wall Street's projections.
The company said tight budgets for customers are hurting its sales, and greater costs affected its profits.
Restaurant chain Cheesecake Factory said sales at older restaurants have fallen in the current quarter.
Energy companies joined the gains as the price of oil reversed an early loss.