Wall Street opened higher on Tuesday (15/9), supported by hopes of stimulus from the Fed

ILLUSTRATION. Wall Street

Source: Reuters | Editor: Herlina Kartika Dewi

KONTAN.CO.ID – NEW YORK. Wall Street opened higher in early trading Tuesday (15/9) driven by technology shares as positive US factory data sparked optimism for an economic rebound. On the other hand, investors are looking for more stimulus from the Fed when the central bank starts its meeting today.

Quoting Reuters, Tuesday (9/15), at 9:56 a.m. local time, the Dow Jones Industrial Average rose 125.30 points, or 0.45%, to 28,118.63, the S&P 500 rose 30.93 points, or 0.91 %, to the level of 3,414.47 and the Nasdaq Composite rose 168.81 points, or 1.53% to the level of 11,225.46.

The tech index jumped 1.6% after recovering from a sell-off earlier this month that knocked the S&P 500 and Nasdaq off all-time highs.

Apple Inc shares rose 2.5% ahead of the virtual product launch, which is expected to unveil an updated watch and iPad.

Also Read: Wall Street: Corona Vaccines and Potential IPOs Support Dow Jones, S&P, Nasdaq Advances

Some experts said in the first policy meeting since Fed Governor Jerome Powell announced a more accommodative stance on inflation, the central bank could shift US Treasury purchases into long-term debt to keep long-term yields low.

“The market is getting a pull from expectations the Fed will continue to keep rates historically low,” said Sam Stovall, chief investment strategist at CFRA in New York.

“It makes the intrinsic value model show very high returns for the stock market in the coming year.”

Expectations from the Fed have risen amid a deadlock in talks for fiscal aid and economic reports showing an uneven recovery from the recession fueled by the coronavirus.

Data on Tuesday showed US factory production increased strongly in August. Separately, US import prices increased more than expected for the same month, supporting the view that inflationary pressures are on the rise.

Earlier data for the day showed China’s industrial production accelerated the most in eight months in August.